![]() ![]() (Of course, Amazon already has an ad-supported Amazon Music tier, but this is separate from Prime). ![]() By removing ads from both a large selection of podcasts and all music, Prime has effectively become the first freemium DSP tier that does not include ads - creating an entirely new tier in the streaming ecosystem. There is one more reason why this move is more impactful than it seems. Plus, Amazon still gets to earn ad revenue from distributing Wondery podcasts across other platforms. The benefit of differentiation is worth any potential loss in revenue. Yet Amazon is one of the only companies that can make this move, since they are earning enough revenue from Prime subscriptions that the maths add up. It has a better ad-targeting tech stack than its competitors, and has made big investments into the podcast advertising space, but is now choosing to forego some of that revenue (or at least until it has built market share). This illustrates the power of not only games content itself, but the fandoms that keep it alive, revealing an audience for other entertainment.Īs The Verge’s Nilay Patel notes, Amazon is making a big sacrifice here. The rise of games-inspired content is taking entertainment by storm. Prime is becoming an increasingly appealing proposition that goes far beyond free shipping, with the recent inclusion of new perks, like its Thursday Night Football live stream and the music catalogue expansion. Why would they not? Of course, not everyone is a Prime member, but with 200 million members worldwide, such a shift could have a sizable impact on other podcast platforms. ![]() Death on Spotify will likely shift their listening of that same podcast to Amazon. This means that a consumer who has a Prime subscription and normally listens to, say, Dr. Most of these podcasts are also available on other platforms, like Spotify and Apple Podcasts. Death and SmartLess, as well as podcasts from NPR, ESPN, CNN and the New York Times. That includes Amazon exclusives, hits from Wondery (which Amazon owns), such as Dr. Prime now offers the largest selection of ad-free podcasts anywhere. Going ad-free, then, is a smart way for Amazon to differentiate. The only way to avoid ads is to pay for a subscription to a specific podcast or network, but the format is not yet mainstream enough for most consumers to consider this. Even if you pay for a Spotify subscription, you are forced to listen to ads during podcasts. But so far, advertisements have been largely unavoidable even for platform subscribers - a necessary evil - as they are a major way most platforms monetise the format. Ads are disruptive to the podcast listening experience, and 35% of podcast listeners report that they usually skip audio ads on podcasts. “The biggest thing don’t like about podcasts is all the ads,” Amazon Music VP Steve Boom recently told The Verge, adding that when Amazon asked customers about their wants, “The number one thing was, ‘Can you make it ad-free?’”. The sly move could be hugely impactful for the podcast market - and Amazon is one of the only companies in the landscape that can do it. ![]() But the announcement also included a major implication for podcast listeners: Prime members can now listen to a large selection of podcasts advertisement-free. Last week, Amazon made headlines with its move to expand the catalogue of music available to Prime members from 2 million songs to 100 million. ![]()
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