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Amazon and its IMDb subsidiary are preparing to launch a free advertising-funded service for its Fire TV digital media player "similar to The Roku Channel or parts of Hulu," CNBC reported Monday, citing knowledgeable sources on the project.
According to CNBC, the new channel will feature a library of shows and movies, as well as interstitial ads and encapsulated in the video player itself. Amazon would also allow marketers to access its user data in what CNBC reported being the first time it has done it on the Fire TV platform:
The service will also help Amazon continue to grow its share of the digital advertising market, dominated by Google and Facebook. According to eMarketer, Amazon is now the third largest digital advertiser, with about 4% of the market. Google and Facebook together have more than 57%.
On the new service, ads may appear between content and marketers will be able to wrap ads around an "integrated video player", similar to many websites. Amazon already allows the ads on the content of Fire TV applications, but this would greatly expand the offer and would better understand the massive user base of Amazon.
According to the CNBC report, the free service seems to rely on the older content libraries of media companies. The article mentioned in its article the possibility that Amazon could set up a similar advertising-funded service with Prime Video content, but Amazon told CNBC that it had not done so. not the intention at the moment.
The news of the service appeared for the first time in The Information, which indicated that the name of the channel could be Free Dive. (This name seems to evoke something of old content, but IMDb and its vast database of analyzes will likely play an important role in the management of its library.) Amazon still accounts for only a tiny part of its overall revenue, the information indicated that it was growing rapidly:
It accounts for the largest portion of Amazon's "other" segment of the bottom line, up 132% to $ 2.2 billion in the second quarter. The Wall Street company, Cowen, estimates that this category will generate $ 8 billion in revenue this year. It's still a tiny fraction of Amazon's more than $ 200 billion revenue this year. And that's good behind Facebook and Google's digital advertising: Facebook posted $ 13 billion in advertising in the second quarter alone. But Amazon's access to shopping data gives him the chance to become a formidable rival.
Although television networks still receive the bulk of video advertising, the site added, Amazon hopes to capitalize on its comprehensive customer information databases to offer "more inventory." video to advertisers wishing to use the company's targeting features ". A key benefit for Amazon, it is expected that the platform controls half of the US e-commerce market, and all of this buying data could possibly help it face the duopoly Facebook-Google in advertising dollars .
According to information, Amazon also recently announced the introduction of more ads on Twitch streaming platform, a subsidiary, including on its "previously paid version without advertising".
[CNBC/The Information]Source link
