Why Prime Video Is One of Amazon's Most Underrated Assets

Core Insights - Prime Video is evolving from a mere perk of Amazon Prime membership to a significant strategic asset and growth engine for the company [2][15] - The introduction of an ad-supported model and integration with Amazon's retail ecosystem positions Prime Video as a powerful player in the connected TV (CTV) market [5][11] Strategic Shift - Initially, Prime Video was designed to enhance customer loyalty and reduce churn by providing video content to e-commerce customers [4] - The service has transitioned from a defensive strategy to a core component of Amazon's business model, now offering third-party subscriptions and ad-supported content [5][6] Advertising Potential - The rollout of ads on Prime Video has opened access to over 200 million global viewers, making it one of the largest ad-supported streaming platforms [8][9] - Amazon's advertising model leverages retail data to allow brands to target viewers based on purchasing behavior, creating a seamless shopping experience [10][13] Connected TV Strategy - Prime Video serves as Amazon's entry point into the living room, with over 200 million Fire TV devices sold, enabling control over the CTV ecosystem [12] - This integrated approach allows Amazon to collect first-party data and enhance ad effectiveness, positioning it as a leader in the CTV advertising space [11][13] Ecosystem Integration - Prime Video is a crucial element in Amazon's strategy to merge commerce, content, and advertising, creating a defensible business model [14][16] - The interconnectedness of Amazon's services enhances overall growth, making Prime Video a vital asset for future expansion [15][16]