Amazon aims to boost its entertainment revenue

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Amazon continues to make moves to keep building its ad business and generate more revenue from entertainment. We think these will pay off for the company, and its shareholders. AMAZON.COM INC., $126.42, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares outstanding: 10.3 billion; Market cap: $1.2 trillion; No dividends paid) is now reportedly planning to launch an ad-supported tier of its Prime Video streaming service. Advertising has been an area of continued growth for Amazon despite worries about an economic slowdown. The company’s ad revenue was $9.5 billion in the first quarter of 2023, up 21% from a year earlier. Amazon is the third-biggest firm in terms of digital ad revenue in the U.S. after Google and Meta Platforms. Advertisers appear eager to have Amazon offer an ad tier for Prime Video service, which would follow similar moves by other streaming platforms including Netflix and Disney. Specifically, ad buyers say they want more access to premium movies and programs that have remained…