business news in context, analysis with attitude

With brief, occasional, italicized and sometimes gratuitous commentary…

•  From Bloomberg:

"Amazon.com Inc.’s push into video advertising will boost annual revenue by as much as $5 billion, according to a Bank of America analysis, mostly generated by new television-style commercials on Prime Video.

"Ads on Amazon’s streaming service will start appearing in North America on Jan. 29 and internationally on Feb 5. To receive ad-free content, North American subscribers will have to pay an additional $3 per month.

"Amazon will sell about $3 billion in video ads this year and generate an additional $1.8 billion from Prime subscribers who pay the extra fee to avoid commercials, BofA analyst Justin Post wrote in a note Wednesday. The estimate assumes 70% of Prime subscribers will opt to watch ads rather than pay the fee."

That revenue will not just help Amazon fund its video production efforts, but also underwrite other things - including its ability to offer low grocery prices.  Just sayin'