My MBA Career: Unveiling the Best Business Model Behind Hollywoods Worst Shows

Last Updated on August 28, 2023 by Robert C. Hoopes

Title: Amazon’s ‘Citadel’ Struggles to Make an Impact as Advertising Dominance Grows

As the battle for dominance in the streaming industry intensifies, Amazon’s streaming show ‘Citadel’ has faced an uphill climb in capturing viewers’ attention. Despite being backed by a hefty $300 million budget, the show has garnered lukewarm reviews and failed to secure a spot among the top-streamed shows in the US. However, Amazon has not been deterred by this setback and is determined to employ its advertising machine to transform its streaming app into a thriving marketplace for third-party sales.

Amazon’s disruptive influence in the digital advertising space has largely overshadowed its underperforming streaming show. The company is projected to generate around $45 billion in ad revenue this year, significantly challenging the duopoly held by Google and Meta. An advantage Amazon holds over its competitors is its access to customer data from its e-commerce site and grocery stores, enabling it to serve personalized ads to a wide range of viewers.

To drive further revenue, Amazon is experimenting with introducing commercials on its popular streaming service, Prime Video. The company anticipates its video-ad business to be worth more than $5 billion annually in the US alone. This ability to measure ad effectiveness and deliver targeted ads will be highly valuable as more viewers shift towards streaming platforms.

In addition to advertising, Amazon has adopted another approach to monetize its video streaming platform. The company aims to sell other companies’ content on Prime Video, retaining a portion of the subscriptions or sales. This not only attracts customers to the platform but also encourages increased spending on other engaging content.

Despite individual shows like ‘Citadel’ struggling to gain traction, Prime Video still boasts a higher share of streaming hours watched in the US compared to its competitors, including Disney+ and Max. Amazon’s position as a content landlord in the video streaming industry may not yet match its dominance in e-commerce, but the company is committed to expanding its influence in this lucrative market.

As Amazon continues to innovate and exploit its extensive resources, its ambition to merge streaming entertainment with its advertising prowess and e-commerce stronghold becomes increasingly apparent. By streamlining its services and capitalizing on its substantial customer base, Amazon is poised to reshape the streaming landscape while maintaining its status as an industry juggernaut.