Amazon executives have began telling entertainment companies that they’re going to be more selective moving forward in regard to what video services to include in the popular Amazon Channels a la carte service, according to The Information (opens in new tab).
Amazon Channels is a component within the larger Amazon Prime Video ecosystem. It lets Prime users subscribe to more than 200 over-the-top video services—everything from HBO to Acorn TV—with billing to multiple platforms centralized and handled through Amazon.
Beyond indicating that the e-commerce giant may be more selective, The information report doesn’t seem to signal that Amazon is backing off its popular Channels marketplace. BMO Capital Markets estimates Channels generated $1.7 billion in revenue for Amazon last year, more than double what it generated in 2017.
Simultaneously, The Information reported that Apple is ramping up a similar OTT bundling model with an eye for an April launch. Meanwhile, Roku has begun to deploy a new feature within its AVOD platform, the Roku Channel, that lets users buy premium video services like Starz through Roku.
“We believe [Prime Video Channels] is a material driver of standalone [over-the-top] subscribers for many entertainment companies,” representing anywhere from 25%-45% of total OTT users depending on the channel, BMO analysts Daniel Salmon and William Lowden wrote in their December report.
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!
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