Amazon’s Streaming Marketplace Strategy Includes Apple Deal

Amazon’s streaming business has evolved from being a mere complement to its e-commerce platform to becoming a significant player in the streaming market. The recent partnership between Amazon and Apple, which allows Apple TV+ subscriptions to be accessed through Amazon’s Prime Video Channels platform, underscores Amazon’s ambition to position itself as a central player in the entertainment industry, as articulated by CEO Andy Jassy.

By integrating Apple TV+ into its offerings, Amazon has taken a step further in its quest to dominate the streaming aggregation space, outpacing its competitors to some extent. While Netflix, Disney, and Peacock are yet to join the Prime Video Channels platform, Amazon currently provides access to almost every major U.S.-based SVOD service, surpassing its Big Tech rivals in this aspect.

One key advantage Amazon holds over competitors like Verizon is its vast user base, primarily driven by Prime subscribers. While Verizon offers a range of SVODs through its +play aggregator, Amazon’s reach is significantly broader. Despite the lack of official figures, Jassy noted that Prime Video had over 200 million monthly viewers as of April 2024, highlighting the platform’s extensive reach.

Although the addition of Apple TV+ to Prime Video Channels is a strategic win for Amazon, it may not lead to a seismic shift in the streaming landscape in terms of subscriber growth. Data from analytics firm Antenna indicates that Apple currently leads in aggregating subscriptions for major SVODs, with Amazon trailing behind. However, Amazon excels in aggregating niche SVODs, such as BritBox, Acorn TV, and Crunchyroll, offering a diverse range of content to consumers.

The data further reveals that Prime Video Channels serve as a marketplace for specialty streaming subscriptions, attracting consumers to explore unique services they might not have considered otherwise. This underscores Amazon’s potential to capitalize on aggregation as a significant revenue stream in the streaming business.

While Prime Video is perceived as a loss leader for Amazon, driving engagement with its Prime subscription program, the platform’s revenue-sharing model with subscription partners presents a lucrative opportunity for the tech giant. Despite the challenges in generating substantial profits from Prime Video content, Amazon’s role as a distribution partner could prove to be a profitable venture in the long run.

In conclusion, Amazon’s foray into the streaming aggregation market signifies its strategic shift towards leveraging its platform as a marketplace for diverse streaming services. As the company continues to expand its offerings and partnerships, aggregation is poised to become a key revenue driver for Amazon in the competitive streaming landscape.