Please ensure Javascript is enabled for purposes of website accessibility

Is Amazon Really Giving You $10 a Month to Watch TV?

By Rick Munarriz - Sep 2, 2020 at 11:18AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you have eight hours to spare in September, the leading online retailer has $5 in Prime Video credit and $5 in Cheez-It products for you.

Some promos seem too good to be true, but there's always a method to the madness. Amazon.com (AMZN -1.44%) is teaming up with Kellogg's (K -0.16%) Cheez-It brand for an unusual marketing stunt. Amazon Prime members can enroll -- literally with just a click if they're already signed in -- for an offer that will deliver $5 in Amazon Prime Video credit and another $5 to be used for the purchase of Cheez-It product purchases through Amazon.com. 

Of course there's a catch. You have to spend eight hours streaming select Prime Video content through the month of September. This won't be a one-off promotion, either. The instructions point out that you will have to reenroll every month for another $10 in Amazon credit, with a countdown clock already ticking down the days until October. It's a pretty crazy promotion. It's also pretty brilliant when you think about it.

A couple on a couch enjoying content on a mounted TV.

Image source: Getty Images.

Searching for clues -- and Clue

This would be a painful chore if you had to stream obscure and dreadful content to make the equivalent of $1.25 an hour in credits, but the first batch of select titles is surprisingly decent. Amazon is rolling with a back-to-school theme with 15 available movies that help qualify for the viewing requirement. You have some throwback cult classics including WarGames, Heathers, and Clue. You also have a rather recent theatrical release on the list in Dora and the Lost City of Gold, the Dora the Explorer live-action update that hit a multiplex near you last summer. 

It's not clear if any of the film studios behind the September content requirements are shelling out money to be a part of the select list, but it's pretty clear what Amazon and Kellogg will be getting out of this. For Kellogg it's fairly obvious. Its Cheez-It crackers recently rolled out Snap'd, a line of thin and warped cheese crackers. It's spending a fair amount on digital marketing for Snap'd, so teaming up with Amazon for $5 in store credit for customers to get a taste of the new offering makes sense.

Amazon has even more to gain here. It began the year with more than 150 million Amazon Prime members, but Prime Video is often an afterthought in the streaming video hierarchy. Amazon includes a growing amount of digital content at no additional cost to current members of its Prime loyalty club. It also sells and rents streaming movies and TV shows that aren't part of its Prime Video catalog at an additional cost.

The world's leading online retailer wants you to spend more time leaning on its digital goodies. It will routinely offer a buck or two in digital vouchers that expire in a few weeks in exchange for folks accepting slower deliveries of physical product orders. A $5 offer is fairly generous, but worth it if it gets you into the habit of leaning on Amazon the next time a major premium video on demand release hits the market. 

Amazon isn't desperate. It just saw net sales soar 40% in its latest quarter, its headiest top-line surge in two years. It's the class act of retail stocks, and it's currently the country's second most valuable company in terms of market cap. If Amazon wants to shell out $1.25 an hour in snack food and content to consume while you're crunching away on Cheez-It Snap'd crackers, it knows exactly what it's doing.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$140.64 (-1.44%) $-2.05
Kellogg Company Stock Quote
Kellogg Company
K
$75.39 (-0.16%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.