SME #10: The pains and gains of integrating Amazon Channels
Streaming Made Easy #10
Welcome back to Streaming Made Easy. This week we deep dive into Amazon Channels and the distribution opportunity it presents for streaming services.
Today at a glance:
Analysis: The pains and gains of integrating Amazon Channels
Streamer snapshot: ITV Signed, the world-first BSL FAST channel
Content Recommendation: The cowboy version of “Succession”
💡 Analysis: The pains and gains of integrating Amazon Channels
What I love about distribution is that it’s more complex than it seems. You don’t just build a video streaming service and get it distributed.
Depending on the underlying business model(s) of your service, you have an array of distribution opportunities to consider.
For Subscription VOD Services, one of these opportunities is Amazon Channels or Prime Video Channels.
What is “Amazon/Prime Video Channels”?
I’d say the service is misnamed as my mind reads channel and automatically thinks TV.
It’s a central hub for premium SVOD streaming services. As a Prime member, you can browse this dedicated section in Prime Video and add stand-alone subcriptions to streaming services other than Prime Video.
The sign up process is facilitated (as Amazon already has all your bank details) and later on you will have all the content from your subscriptions in one spot.
When did Amazon launch this hub?
It was launched in the US in 2015, international markets like UK, DE followed in 2017. Today, it is available in 14 markets (US, CA, UK, DE, FR, IT, SP, NL, AT, JP, AU, MX, BR, IN).
Which streaming services are available through Amazon Channels?
The “channel” line up varies from market to market.
In the UK, 58 streaming services are available including:
Big household names: Paramount+, Discovery+, Britbox or
Highly curated niche services: Studio Canal presents, Acorn TV, Curzon.
As you can see, few Tier 1 players are referenced but the line up has been growing over the years.
Markets like Spain & Germany (with more markets to follow in 2023) will launch DAZN. France launched Warner TV Pass just in time for the release of “The last of us” (and it was important as HBO had no French broadcaster secured after the end of its exclusive Pay TV deal with OCS).
The likes of Netflix or Disney+ are unlikely to ever be integrated but everyone else should weigh in the pros and cons of being an Amazon Channel when drafting its distribution strategy.
Why does it matter to your distribution?
The birth of the Direct to consumer trend in streaming can be seen as video services breaking free. From whom you might ask? The cable/satellite/telecom gatekeepers you needed to reach the end consumers.
No more, time to get these subscribers ourselves and maintain a direct relationship!
Except that running a D2C streaming video service is hard and is getting harder by the day. It's not about putting content out there in the hope it reaches consumers. You need to have your service distributed widely and guess what? You need to go to gatekeepers, it’s just a different set of gatekeepers now and Amazon Channels is one.
The gains of integrating Amazon Channels:
Instant access to millions of Prime subscribers across 14 markets. The value in that? Users have created an account, they have registered a method of payment, they have opted in (or not) to Amazon’s communications, they generate data daily. A lot of the groundwork has been done.
Your service is available on hundreds of devices & platforms (when you may have an app compatible with only a handful of ecosystems).
Your brand is featured across the hub, editorial and paid placement opportunities are available.
If your brand lacks awareness, then their content 1st UI/UX will drive users to your service.
Discoverability of your content will be facilitated by the one-stop shop hub and their universal search, benefitting your engagement hours.
Their marketing firepower in and out of home, during annual events like Black Friday, Prime Day, present amazing opportunities including promo deals.
The pains:
You no longer have a direct customer relationship (at least with the customers acquired through them).
You’re dependent on the level of data they share with you.
You don’t control how your content is surfaced and editorialized.
They dictate the product features and the overall user experience.
The technical onboarding can prove tidious.
Yes ideally you want to keep 100% control on everything but not every streaming video service has the $$ and brand to do that (👀 Netflix, Disney+, HBO, Apple TV).
Admitting it is not a sign of weakness, it's just good business sense.
What matters now is that you don't become too dependent on Amazon Channels by keeping a diverse pipeline of new subscribers through telco partnerships & app distribution deals.
Eager to see if contenders like Youtube TV, Apple or Roku (who all operate a Channels hub in the US) can grow internationally.
📺 Streamer snapshot: ITV Signed, the world-first BSL channel
With the launch of ITVX in December, ITV unveiled ITV Signed. It's the British Sign Language FAST Channel, hours of signed content from ITV's library.
I really love seeing this type of initiative come out of the FAST ecosystem. It signals a massive opportunity for FAST to differentiate itself by being a hub for more diversity and inclusion on TV.
The beauty of FAST is that you can create a channel fairly quickly. You can test and learn to see what meets its audience. If not, you move on. This level of flexibility means there's no more excuse for companies not to innovate and make themselves more accessible, diverse and inclusive. ITV just did that, let’s see who’s next.
To check it out 👉 ITVX
🎬 Content recommendation: The cowboy version of “Succession”
Every time, there is a new streaming service launching, I’m like: "Hmm I’m set, I won’t sign up”. And then, they then lure me in with great new TV Series. This happened recently with Sky Showtime (launched in November ‘22 in the Netherlands) and their hit show “Yellowstone”.
Is it the beautiful landscapes of Montana? How mean these guys are? or just looking for a 90s version of me in love with Kevin Costner?
I don’t know but I’m completely hooked! I’m well into season 2 (out of the 4 available). Fancy giving it a go 👉 SkyShowtime
That’s it folks. I hope you found this interesting and if you did, please don’t hesitate to tell your colleagues, bosses, friends & families about it.
Enjoy your weekend and see you next Friday for another edition of Streaming Made Easy!
At night, I write Streaming Made Easy and post each working day on Linkedin.
By day, I run The Local Act, a streaming video consultancy.
Whenever you’re ready, there are 2 ways I can help you:
If you’re looking to start a FAST Channel business, I designed a Program called "How to get into FAST" where I fast-track the launch of your FAST Channel Business in 90 days (Book a call to discuss).
Last but not least, work with me 1:1 to grow your streaming video business in Europe (market intelligence, go to market strategy, distribution expansion etc.).