Latest news with #PrimeMusic
Tom's Guide
12-06-2025
- Business
- Tom's Guide
Prime Video reportedly doubling the amount of ads you'll see — streaming just got a lot worse
Remember the streaming dream we were sold of unlimited ad-free movies and TV shows compared to the commercial-stuffed days of cable? I'm starting to feel like we bought a lemon, because it appears that Amazon's Prime Video has quietly increased the number of ads on its content. According to a report by Adweek, Prime Video has almost doubled the number of ads on its platform from three-and-a-half minutes per hour to six minutes of commercials in the average 60 minutes of watchtime. That's a big jump. The report sources conversations with ad buyers and documentation seen by Adweek, but has not been officially confirmed by Amazon. In the report, Kendra Tang, programmatic supervisor at Rain the Growth Agency, said, '[Amazon] told us the ad load would be increasing. That's been confirmed recently when we noticed more avails in the system.' I haven't noticed an uptick in the number of ads while streaming on Prime Video. However, this could be due to a slower rollout, or it may be region-specific, with the U.S experiencing a higher frequency and places like the U.K., where I live, spared from what is effectively a user-experience downgrade. Prime Video introduced ads to its previously ad-free platform in January 2024. Rather than creating a cheaper ad-supported plan like some rival services, Amazon opted to include ads on its standard tier and offer users the option of paying an additional $2.99 a month to remove them. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. The majority of the best streaming services now run ads on at least one of their tiers, including Netflix, Hulu, Peacock and Paramount Plus. Free streaming services like Tubi also use ads, but in those cases, it feels like a fair trade-off considering you're getting access to loads of movies and shows without paying a cent. Coughing up a subscription fee and tolerating commercial breaks feels significantly less appealing, but this is now streaming in 2025. Currently, a Prime Video subscription costs $14.99 per month, or $139, though this is for the larger suite of benefits included with Amazon Prime. Amazon Prime: for $139/year @ AmazonAmazon Prime gives shoppers access to free shipping on over 100 million products. It also includes access to services like Prime Video and Prime Music. You can pay an annual $139 fee or choose a monthly plan at $14.99. These perks range from free shipping (on Amazon-sold items), and access to services such as Prime Gaming, Amazon Music Unlimited, Amazon Photos and Gruhhub Plus. It's certainly not a bad deal overall. Nevertheless, more ads on Prime Video are hardly welcome, and the cynic in me does have to wonder whether that six-minute per hour ratio will increase further in the months or years to come. If you're looking for something to watch on Prime Video, here's a guide to everything new on the service in June 2025. Unfortunately, you probably will have to tolerate more ads when watching any of these movies or TV shows.
Business Upturn
24-04-2025
- Business
- Business Upturn
Deep dive into Amazon's multifaceted business model
Once dismissed as merely 'the world's biggest bookstore,' Amazon has evolved into a corporate leviathan with tentacles in nearly every aspect of modern commerce. Its influence spans e-commerce, cloud computing, entertainment, logistics, artificial intelligence, advertising, and even healthcare. As of 2025, Amazon is not just a retail platform; it is a digital ecosystem that powers a substantial chunk of the global internet economy. With more than 300 million active users, over 1.5 million third-party sellers, and a market cap routinely flirting with the trillion-dollar mark, Amazon's business model is not just diverse, it's foundational to how online business is conducted. This article dissects Amazon's expansive business model, analyzing how it integrates infrastructure, data, customer loyalty, and innovation into a self-reinforcing profit engine. We explore each revenue stream, uncover the synergies that make Amazon unique, and assess the future trajectory of one of the most influential companies in history. Amazon's Business Model: The Fulcrum of the Flywheel Amazon's retail empire still forms the backbone of its revenue, generating hundreds of billions annually. But the company does not operate like a traditional retailer. Instead, its e-commerce platform operates more like a digital marketplace, leveraging data to match consumers with products—whether sold by Amazon directly or by third-party vendors. First-party sales are those in which Amazon acts as a retailer, purchasing goods wholesale and reselling them. While these generate direct revenue, margins are often thin. More lucrative are third-party sales, where Amazon provides a platform, logistics, and payment infrastructure while collecting referral fees, which can range from 6% to 45% depending on the category. This dual system lets Amazon capture value from virtually every transaction on its platform while avoiding the overhead of inventory management for a majority of products. Fulfillment by Amazon (FBA) FBA is a cornerstone of Amazon's e-commerce dominance. Sellers ship inventory to Amazon warehouses, and the company handles storage, packing, shipping, returns, and customer service. This not only increases Prime-eligible listings but also reinforces loyalty by offering consumers faster, more reliable delivery. FBA revenue includes fees from storage and fulfillment, further boosting Amazon's margins while creating logistical dependence among sellers. Amazon Prime: Loyalty as a Business Model At the heart of Amazon's recurring revenue strategy is Amazon Prime, a subscription service that now boasts more than 200 million members worldwide. For an annual or monthly fee, members receive perks such as free two-day shipping, exclusive deals, Prime Video, Prime Music, and early access to sales. Prime is not just a loyalty program; it's a behavioral engine. Subscribers tend to shop more frequently, spend more per transaction, and explore Amazon's broader ecosystem. The subscription fees alone generate billions annually, but the real value lies in lifetime customer value and reduced churn. Amazon Web Services (AWS): The Profit Business Model While retail generates volume, AWS generates profits. Launched in 2006, Amazon Web Services provides cloud computing infrastructure, storage, databases, machine learning tools, and analytics for startups, enterprises, and governments. AWS contributes a disproportionately high percentage of Amazon's operating income, often exceeding 70% in a given quarter. Its margins are exceptionally high compared to retail, and its clientele includes some of Amazon's fiercest retail rivals, such as Netflix, Walmart, and Target. The cloud division gives Amazon the financial flexibility to invest aggressively in logistics, hardware, AI, and global expansion. It also provides valuable data and AI capabilities that feed back into the rest of the business. Advertising: Amazon's Quiet Juggernaut in Business Model Amazon has stealthily become the third-largest digital advertising platform in the world, trailing only Google and Meta. Its ad business is based on search and display advertising within its ecosystem, targeting users based on purchase history, search behavior, and demographic data. Brands pay to appear in search results, product pages, and through display ads on Amazon-owned properties like IMDb and Twitch. Sponsored listings on Amazon often have higher conversion rates than ads on social media, making them highly valuable. Amazon's ad revenues surpassed $40 billion in 2024, with margins rivaling those of its cloud division. Amazon's Business Model: Logistics and Supply Chain Unlike many tech companies, Amazon is deeply involved in the physical world. Its vast network of fulfillment centers, last-mile delivery vans, cargo planes, and even ocean freight services make it one of the largest logistics companies globally. Amazon increasingly bypasses traditional carriers like FedEx and UPS, using its own delivery service, Amazon Logistics, to handle the bulk of U.S. and international shipments. This not only reduces costs but gives Amazon end-to-end control over the customer experience. Warehouses use robots to sort and move packages, drones are being tested for last-mile delivery, and AI algorithms manage inventory and routing. These technologies reduce labor costs and delivery times, enhancing Amazon's competitive edge. Amazon's Business Model: Echo, Alexa, and Beyond Amazon has made significant investments in hardware, including the Echo smart speaker, Kindle e-readers, Fire tablets, and the Ring doorbell system. While device margins are slim, their strategic value is immense. These products serve as data collection endpoints, interfaces for Alexa voice services, and platforms for upselling Amazon services. Voice commerce, smart home automation, and IoT integration are all key areas Amazon is aiming to dominate. Amazon's Business Model: The Prime Video Strategy Prime Video is more than a streaming service; it's a customer acquisition tool. Amazon invests billions in original content, live sports rights, and global expansion not just to compete with Netflix but to enhance the value of Prime. The content ecosystem feeds into Amazon's hardware (Fire TV), cloud (AWS hosts video content), and advertising (ad-supported tiers and pre-roll ads). It's a strategic loss leader that reinforces customer stickiness. Amazon's Business Model: Healthcare, Groceries, and the Next Frontiers Amazon has made aggressive moves into healthcare and grocery retail. With the acquisition of One Medical and PillPack, the company aims to simplify primary care, pharmacy services, and telehealth. In grocery, Amazon acquired Whole Foods and launched Amazon Fresh. These serve both as physical retail footprints and hubs for faster delivery of perishable goods. These ventures are still in their early monetization stages, but they reflect Amazon's ambitions to be the default service provider for essential life needs. Amazon's Business Model: The Algorithmic Moat Amazon collects more data than perhaps any other retailer: search behavior, purchase history, delivery preferences, reviews, and even interactions with Alexa. This data powers: Personalized recommendations Dynamic pricing algorithms Inventory forecasting Fraud detection This creates an algorithmic moat, making it exceedingly difficult for competitors to replicate the seamless customer experience Amazon provides. Amazon's Business Model: Environmental and Regulatory Considerations Amazon's growth has attracted regulatory scrutiny worldwide. Antitrust lawsuits in the U.S. and EU allege monopolistic practices. Labor practices at warehouses have faced criticism. Environmental groups scrutinize its carbon footprint. In response, Amazon launched the 'Climate Pledge' to become net-zero carbon by 2040 and is investing in electric delivery fleets and sustainable packaging. Amazon's Business Model is Built for Ubiquity Amazon's business model is a masterclass in strategic diversification and integration. Each division feeds the other: retail drives Prime; Prime drives loyalty; AWS funds innovation; data fuels advertising; logistics ensures speed; and devices anchor customers in the ecosystem. It's not just a company, it's a platform, a logistics network, a media empire, and a cloud powerhouse rolled into one. The genius of Amazon's model lies in its flywheel effect. As each component gains momentum, it amplifies the power of the whole. In an era where digital monopolies face constant disruption, Amazon remains not only resilient but revolutionary. Whether it will maintain its dominance or face significant backlash from regulators and consumers remains to be seen. But for now, the empire that delivers shows no signs of slowing down. (Business Upturn does not guarantee the accuracy of information in this article)
Los Angeles Times
14-03-2025
- Business
- Los Angeles Times
Bill Ackman's Pershing raises $1.4 billion in Universal Music Group stake sale
A group of Universal Music Group shareholders affiliated with billionaire Bill Ackman's hedge fund Pershing Square raised more than $1.4 billion from the sale of a 2.7% stake in the world's largest music company. Pershing Square priced an offering of about 50 million Universal Music shares, according to terms of the deal seen by Bloomberg on Friday. The placement comes as Taylor Swift's record label plans a U.S. share sale agreed in order to fulfill an agreement with Pershing Square, the company said in January. The deal required that Ackman's firm sell $500 million of its shares in connection with a U.S. listing, according to a post on Ackman's X account at the time. Universal Music is Pershing's largest position and will be about 17% of the portfolio after the sale, Ackman wrote in an X post on Thursday. 'We believe UMG is one of the best businesses we have ever owned,' Ackman said. Shares of Universal Music dropped as much as 11% in Amsterdam and pared this year's gains to about 2%. Universal Music reported sales that topped analysts' estimates in the fourth quarter, boosted by growth from subscriptions to streaming platforms. Executives have focused on winning new subscribers on platforms such as Spotify, Apple Music and Amazon's Prime Music by converting listeners on free, ad-supported streaming tiers to paid premium subscriptions. The company's top-selling artists of the fourth quarter were Swift, Billie Eilish, Sabrina Carpenter and Chappell Roan, as well as the soundtrack to 'Wicked.' Morgan Stanley worked on the Amsterdam share sale, the terms showed. Gopinath and Jacob write from Bloomberg. With assistance from Andre Janse Van Vuuren
Yahoo
14-03-2025
- Business
- Yahoo
Ackman's Pershing to Raise $1.4 Billion in UMG Stake Sale
(Bloomberg) -- A group of Universal Music Group NV shareholders affiliated with billionaire Bill Ackman's hedge fund Pershing Square is set to raise about €1.3 billion ($1.4 billion) from the sale of about a 2.7% stake in the world's largest music company. Trump DEI Purge Hits Affordable Housing Groups Electric Construction Equipment Promises a Quiet Revolution NYC Congestion Pricing Toll Gains Support Among City Residents Open Philanthropy Launches $120 Million Fund To Support YIMBY Reforms Prospect Medical's Pennsylvania Hospitals at Risk of Closure Pershing Square Holdings Ltd., Pershing Square LP and Pershing Square International Ltd. are poised to price an offering of about 50 million Universal Music shares at €26.60 each, according to terms of the deal seen by Bloomberg News, the bottom of a marketed range. There are enough orders to cover the shares offered, the terms show. Shares in the Amsterdam-listed company were being marketed at €26.60 to €27.90 each. The placement comes as Taylor Swift's record label plans a US share sale agreed in order to fulfill an agreement with Pershing Square, the company said in January. The deal required that Ackman's firm sell $500 million of its shares in connection with a US listing, according to a post on Ackman's X account at the time. Universal Music is Pershing's largest position, and will be about 17% of the portfolio after the sale, Ackman wrote in an X post on Thursday. 'We believe UMG is one of the best businesses we have ever owned,' Ackman said. Shares of Universal Music closed at €27.90 each in Amsterdam on Thursday. They have climbed 13% in the year to date. The company's American depositary receipts declined 6.5% in New York. Universal Music reported sales that topped analysts' estimates in the fourth quarter, boosted by growth from subscriptions to streaming platforms. Company executives have focused on winning new subscribers on platforms such as Spotify Technology SA, Apple Inc.'s Apple Music and Inc.'s Prime Music by converting listeners on free, ad-supported streaming tiers to paid premium subscriptions. The company's top selling artists of the fourth quarter were Swift, Billie Eilish, Sabrina Carpenter and Chappell Roan, as well as Wicked: The Soundtrack. Morgan Stanley is working on the Amsterdam share sale, the terms show. (Updates with Ackman social media post in fifth and sixth paragraph.) How America Got Hooked on H Mart How Trump's 'No Tax on Tips' Could Backfire for the Working Class How Natural Gas Became America's Most Important Export Disney's Parks Chief Sees Fortnite as Key to Its Future Germany Is Suffering an Identity Crisis 80 Years in the Making ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
Amazon Canada deals: Wondering if Amazon will have a spring Prime Day? What we know so far about the Big Spring Sale
It's already March, and you know what that means — spring is right around the corner. Last year, Amazon Canada dropped their first-ever Big Spring Sale towards the end of the month. And while the retailer hasn't announced anything for 2025 — our shopping experts predict the retail giant will have another similar sale this year. We'll update this piece as additional information becomes available, so make sure you bookmark it to check back. That said, you don't have to wait to score savings — Amazon Canada has tons of sweet deals happening right now. Keep reading for everything we know so far — plus the best deals you can shop right now. The Big Spring Sale, which launched in March 2024, is yet another opportunity for Amazon shoppers to score big-ticket items at prices comparable to Black Friday and Prime Day. It's a great time to snag savings across a wide range of categories, including tech, home & living, fashion, beauty and more. Previous deals have included Amazon devices, brand-name appliances and more. While Amazon hasn't confirmed there will be a 2025 Big Spring Sale, if it happens, we predict it will be towards the end of March. Last year's sale kicked off on March 20, and new deals were added daily throughout the multi-day event. The 2024 Amazon Big Spring Sale was 6 days long, running from March 20-25. Based on previous patterns for Amazon's major shopping events like Prime Day and the Amazon Big Deal Days, we expect this year's sale would be a similar length. Last year's Big Spring Sale included deals on home, electronics, lawn & garden, luxury beauty, health & personal care, kitchen and more — all at up to 50 per cent off. Yes and no. If we're using 2024's event as a guide, it's likely that Prime members will have access to exclusive deals unavailable to the public. However, it will not be to the same extent as Prime Day. While Prime Day is a Prime member-exclusive sale, the spring sale in 2024 was an opportunity for all Amazon customers to shop for discounts on seasonal items for spring. Even though we anticipate many deals will be available to the public during Amazon's Big Spring Sale, we still think a Prime membership is worth it — here's why. In addition to exclusive Prime membership deals when Amazon Prime Day 2025 rolls around, Prime members enjoy several year-round perks, including the following: Free two-day and same-day shipping Exclusive access to Prime Video original TV shows and movies Stream or download hit movies and TV shows Free eBook and music downloads through Prime Music and Prime Reading New Prime members can enjoy a free 30-day trial before committing to a membership. Once your free trial ends, memberships cost $99/year or $9.99/month for Canadian subscribers. Student discounts are also available. While Amazon's spring sale is still up in the air for this year, you don't have to wait to score sweet deals on Amazon Canada. From tech and small kitchen appliances to spring seasonal essentials, these are the best Amazon Canada deals available right now.
