The list of companies threatened by Amazon seems to be growing month by month. To this list, we can now add companies that rely on video ad revenues – especially Roku.
Amazon prepares to release a new video service that is supported by ads The information reported on Tuesday. The service will be available to the 48 million users of Amazon Fire TV devices, including HDMI dongles from Amazon or its Alexa Fire Cubes.
The IMDB, which bought Amazon 20 years ago, will develop the service. Amazon can call it Free Dive and offers it as a free alternative to Prime Video, with content like older TV shows. Amazon is already receiving ad revenue from the video ads that IMDB performs on movie trailers. The company also sees advertising revenue in its e-commerce store and has shown more ads on its popular Twitch gaming website.
The service is reported to have launched Roku, the Roku Channel, which airs old movies like The Matrix and TV repeats like charms and good times . Ads were an important source of revenue for Roku. According to the report on Amazon's plans, Roku's share fell 2% on Tuesday.
Advertising has become a reliable growth area for Amazon in recent years. The company's "other" revenue segment, which is primarily ad revenues, grew 1
"It's now a multi-billion dollar business for us," said Amazon CFO Brian Olsavsky said during the company's most recent earnings call. "We see strong adoption in a number of areas – Amazon vendors, vendors, authors, and third-party vendors seeking to reach Amazon customers."