Amazon Kicks Prime Instant Video Marketing Into High Gear

Amazon.com (NASDAQ: AMZN  ) is about to throw some serious marketing muscle behind its Prime Instant Video service.

The e-tailer just updated its revenue-sharing operating agreement with independent partners such as bloggers and other third-party websites. Under the program, Amazon's so-called associates send potential customers to Amazon via special links, and earn a share of the resulting sales. Depending on the type of product and volume of sales leads involved, the rates generally range from 4% to 8.5%. Some special marketing programs bump up the fees to double-digit rates, but most bloggers will stay in the land of single-digit advertising fees.

So it's a big deal when Amazon suddenly busts out a flat $2 per Prime Video customer referred. For a one-month Prime customer, that would amount to a 25% cut, and a serious incentive to get behind the program. The agreement, which takes effect on July 1, even covers free trials, which works out to an infinite percentage of Amazon's guaranteed sales.

In the video below, Fool contributor Anders Bylund explains how this move lays the groundwork for a serious marketing blitz over the summer. He'll also tell you why the attack doesn't make him lose sleep over his Netflix (NASDAQ: NFLX  ) holdings.

The television landscape is changing quickly, with new entrants like Netflix and Amazon.com disrupting traditional networks. The Motley Fool's new free report, "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2514471, ~/Articles/ArticleHandler.aspx, 4/19/2014 4:02:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASD 4,095.52 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/17/2014 3:59 PM
AMZN $324.91 Up +1.23 +0.38%
Amazon.com CAPS Rating: ***
NFLX $345.74 Up +14.33 +4.32%
Netflix CAPS Rating: **

Advertisement