Berlin The US Internet company Amazon is also focusing on advertising revenue with a new streaming service. Users watch series with an advertising break, but the whole thing is free. How strong will this trend become in this country?
At no additional cost – but with advertising
When streaming – i.e. the retrieval of moving image content on the net on platforms away from continuous, predetermined TV programs – became established, many providers relied on revenue through subscriptions instead of advertising. Netflix, Disney+, Apple, DAZN, Sky and also Amazon with its streaming service Prime Video rely on the subscription card. Many Germans like to stream and have several subscriptions at once – Netflix and Amazon are ahead in studies and among market observers in this country.
There are also mixed models: for example, on the platforms RTL+ from the RTL Group and Joyn from ProSiebenSat you can.1 see free advertising-financed offers, there are subscription models on these platforms at the same time. Now advertising financing in streaming with Amazon is getting a weighty amplifier. The advertising market is attractive for moving image providers, this has been seen for decades in the TV market, where billions of sales are generated. Or even on Youtube.
A closer look at the Amazon Freevee offer, which launched on Wednesday: films and series will be shown at no additional cost, but with advertising interruptions. After the USA and Great Britain, Germany is the third country in which this offer is placed.
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Own productions, as well as external series and films
“We offer users an offer that they would typically expect behind a paywall,” an Amazon spokesman told the German press Agency. It will be a mix of own productions, external films and series, which are in the portfolio via licenses, and perspective linear TV channels. Amazon Freevee offers thematically programmed linear live channels at the start – for example BBC Food or BBC Travel. All channels are available in German.
The co-head of Amazon’s content business, Ryan Pirozzi, told dpa about the goal of Amazon Freevee: “We want to reach as many customers as possible.” The Group did not specify a target brand for Amazon Freevee for customers and sales in Germany. Austria is to follow as another European country at a later date.
Amazon is already present in the streaming market with Prime Video. The moving image service is part of the Prime subscription, with which you can also listen to music or save shipping costs when shopping via the Amazon platform. Recently, the subscription price increased.
Various effects on Germany’s TV landscape
The consulting and market research company Goldmedia sees possible effects from the new free Amazon service. Goldmedia Managing Director Klaus Goldhammer told dpa about the offer: “This could once again reposition the streaming market in Germany.” Those who have shied away from a subscription until now, for example, could now be attracted. Likewise, younger people who are not so well-off.
Goldhammer also assumes an impact on the classic television advertising market. Linear private TV channels such as the RTL Group or ProSiebenSat.1 could get competition, because advertisers might go to Amazon Freevee. In addition, a new competitive pressure could arise for public broadcasting with ARD and ZDF, which are currently greatly expanding their media libraries and streaming services, Goldhammer added. Because people who wanted to stream without a subscription and found what they were looking for on ARD and ZDF now have another offer as a selection.
