Amazon’s pitch deck shows why it could be better positioned than other video streaming services to help marketers reach rich consumers

Amazon Fire TV

  • Amazon has been making a big push into OTT advertising and says in a recent pitch deck for advertisers that 80% of Amazon Fire owners are Prime members, implying it reaches a wealthy audience.
  • Amazon also claims that 69% of Amazon Fire owners are college-educated and another 44% are homeowners.
  • The pitch differs from those of rivals Roku and Pluto TV, which have recently indicated that people may be getting subscription fatigue.
  • Visit Business Insider’s homepage for more stories.

The rise in premium, ad-free video services like Netflix and HBO has some marketers worried that they won’t be able to find enough high-income consumers. Amazon says that its audience bucks that trend.

Amazon is building an OTT advertising business to rival Roku, Hulu, and other ad-supported services through Amazon Fire, its streaming video hardware. Amazon sells ads in publishers’ OTT apps as well as in FreeDive, IMDB’s ad-supported streaming service. The company also sells spots during live-streamed broadcasts of sports games like the NFL’s Thursday Night Football.

According to a recent pitch deck that Amazon has been using to pitch OTT ads to advertisers, Amazon viewers are lucrative. 80% of consumers who own an Amazon Fire TV device are Prime members, showed one slide in the pitch deck, citing internal numbers. The slide also cites research from eMarketer finding that Fire TV owners are more likely to have a household income of more than $100,000. (The slide didn’t give a comparison point.)

Amazon says that 34 million people use its Fire TV streaming devices every month.

Read more: Amazon wants to take on OTT heavyweights like Roku for advertising dollars. Here’s the pitch deck it’s using to sell marketers video ads.

Prime memberships come with perks like two-day delivery, access to ad-free original video programming and deals, and are increasingly becoming mainstream in the US. According to a Consumer Intelligence Research Partners survey published in January, more than 100 million people use Amazon Prime benefits, representing 62% of Amazon shoppers. At a cost of $119 a year, Prime also represents a high-income consumer.

Amazon OTT advertising pitch

Another slide cites additional internal data that 44% of Fire TV owners have children in the household while another 69% are home owners. Amazon claims that 62% of Fire TV owners are college-educated and 66% of its audience is 25 to 54 years old.

Amazon OTT pitch

Amazon’s audience represents a hard-to-reach and wealthy audience for marketers. As consumers increasingly pay to avoid advertising or download ad blockers, some of Amazon’s OTT rivals like Roku and Pluto TV are taking a different tack in pitching themselves to advertisers.

According to a pitch deck published by Digiday last year, Roku claimed that 87% of its users “are not willing to pay any amount to avoid ads,” suggesting that its consumers are not open to a subscription plan.

Other players like Viacom-owned Pluto TV says that people are getting subscription fatigue. In an interview with Business Insider after acquiring Pluto TV for $340 million in January, chief financial officer Wade Davis said that the streaming service is a billion-dollar business that relies on a large group of consumers watching ads for free.

“There is a segment of the market that doesn’t want to pay for anything, and we can be their video and entertainment choice,” he said.

Join the conversation about this story »

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The rise in premium, ad-free video services like Netflix and HBO has some marketers worried that they won’t be able to find enough high-income consumers. Amazon says that its audience bucks that trend.

Amazon is building an OTT advertising business to rival Roku, Hulu, and other ad-supported services through Amazon Fire, its streaming video hardware. Amazon sells ads in publishers’ OTT apps as well as in FreeDive, IMDB’s ad-supported streaming service. The company also sells spots during live-streamed broadcasts of sports games like the NFL’s Thursday Night Football.

According to a recent pitch deck that Amazon has been using to pitch OTT ads to advertisers, Amazon viewers are lucrative. 80% of consumers who own an Amazon Fire TV device are Prime members, showed one slide in the pitch deck, citing internal numbers. The slide also cites research from eMarketer finding that Fire TV owners are more likely to have a household income of more than $100,000. (The slide didn’t give a comparison point.)

Amazon says that 34 million people use its Fire TV streaming devices every month.

Read more: Amazon wants to take on OTT heavyweights like Roku for advertising dollars. Here’s the pitch deck it’s using to sell marketers video ads.

Prime memberships come with perks like two-day delivery, access to ad-free original video programming and deals, and are increasingly becoming mainstream in the US. According to a Consumer Intelligence Research Partners survey published in January, more than 100 million people use Amazon Prime benefits, representing 62% of Amazon shoppers. At a cost of $119 a year, Prime also represents a high-income consumer.

Amazon

Another slide cites additional internal data that 44% of Fire TV owners have children in the household while another 69% are home owners. Amazon claims that 62% of Fire TV owners are college-educated and 66% of its audience is 25 to 54 years old.

Amazon

Amazon’s audience represents a hard-to-reach and wealthy audience for marketers. As consumers increasingly pay to avoid advertising or download ad blockers, some of Amazon’s OTT rivals like Roku and Pluto TV are taking a different tack in pitching themselves to advertisers.

According to a pitch deck published by Digiday last year, Roku claimed that 87% of its users “are not willing to pay any amount to avoid ads,” suggesting that its consumers are not open to a subscription plan.

Other players like Viacom-owned Pluto TV says that people are getting subscription fatigue. In an interview with Business Insider after acquiring Pluto TV for $340 million in January, chief financial officer Wade Davis said that the streaming service is a billion-dollar business that relies on a large group of consumers watching ads for free.

“There is a segment of the market that doesn’t want to pay for anything, and we can be their video and entertainment choice,” he said.

Sammy Singh

Graduate of UCLA and Wharton School of Business and Media Personality. World renowned global entrepreneur, venture capitalist, financial technology professional, tax specialist, marketing mogul, and more! Connect with me at: www.linkedin.com/in/cfo www.instagram.com/champagnegqpapi www.facebook.com/sammysinghcxo www.twitter.com/cxosynergy

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Regulators can't decide how much training pilots need to fly the Boeing 737 Max, and it could result in even longer delays to the aircraft's return

Wed May 29 , 2019
<div><p><img src="https://static4.businessinsider.com/image/5cee591411e20506ef09fcd2-2400/2019-05-22t215255z1lynxnpef4l21brtroptp4ethiopia-airplane-boeing-sensor.jpg" border="0" alt="FILE PHOTO: An aerial photo shows Boeing 737 MAX airplanes parked at the Boeing Factory in Renton, Washington, U.S. March 21, 2019. REUTERS/Lindsey Wasson/File Photo" data-mce-source="Reuters" data-mce-caption="FILE PHOTO: An aerial photo shows Boeing 737 MAX airplanes parked at the Boeing Factory in Renton"></p><p></p> <ul class="summary-list"><li><strong>Regulators are debating the level of training that Boeing 737 Max pilots will need before the plane can return to service.</strong></li> <li><strong>Aviation authorities around the world are attempting to decide if pilots need training on expensive flight simulators, or just an online course.</strong></li> <li><strong>Flight simulator training could delay the return of the 737 Max to the skies even further.</strong></li> <li><strong>Regulators outside the US could also disagree with the FAA's criteria, which would mean the plane could return to service in some regions sooner than in others.</strong></li> <li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories.</a></strong></li> </ul><p>Regulators in the US and around the world are debating the level of training needed by pilots of Boeing 737 Max aircraft before the plane can be approved to fly again after two fatal crashes.</p> <p>Regulators are considering whether pilots need to fly on a simulator or just complete computer-based training, and the decision could determine when the 737 Max, already a <a href="https://www.businessinsider.com/boeing-737-max-crisis-air-china-calling-for-compensation-2019-5">source of frustration for airlines</a> who have have had to ground the plane for the last two months, can return to the skies.</p> <p>Regulators from 33 countries met with the US Federal Aviation Administration last week to ask about Boeing's software update to the planes, which has been completed but not submitted to the FAA for approval.</p> <p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/boeing-737-max-crisis-air-china-calling-for-compensation-2019-5">Even more airlines are demanding payback from Boeing for its 737 Max disasters — here's the full list</a></em></p> <p>But at the meeting regulators were also conflicted over whether pilots should train in a simulator, which could leave the plane grounded for the months to come, <a href="https://www.nytimes.com/2019/05/23/business/boeing-737-max-faa-regulation.html">The New York Times reported</a> after the meeting. </p> <p>The timeline for when the plane will return is unclear, with Boeing and the FAA eager to return the plane to the sky, but concerned that both their reputations have already taken a hit. </p> <p><img src="https://static3.businessinsider.com/image/5cee673111e20509c4681ed4-1800/gettyimages-1129861423.jpg" border="0" alt="Ethiopian Airlines boeing 737 Max crash" data-mce-source="MICHAEL TEWELDE/AFP/Getty Images" data-mce-caption="Debris from the crashed Ethiopian Airlines plane in March 2019."></p> <p>Sources <a href="https://www.businessinsider.com/exclusive-faa-tells-un-aviation-agency-737-max-ungrounding-in-us-could-happen-by-late-june-sources-2019-5">told Reuters</a> that the FAA told members of the UN's aviation agency that the plane could return to service as early as late June. But Daniel Elwell, the acting administrator of the FAA, said last week that he could not outline a clear timeline.</p> <p><span>"We can't be driven by some arbitrary timeline," he said on Thursday. "I don't have September as a target, I don't have June as a target."</span></p> <p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/boeing-played-down-737-max-second-crash-concern-pilots-audio-reports-2019-5" data-analytics-position="4">Boeing dismissed fears of a 2nd 737 Max crash when confronted by pilots after the plane's first disaster, leaked audio reveals</a></em></p> <p>Prior to the disasters, 737 Max pilots were not trained on simulators, and the FAA said in April that <a href="https://www.businessinsider.com/boeing-737-max-faa-software-pilot-training-operationally-suitable-2019-4?r=US&IR=T">pilots would not need simulator training</a>. </p> <p>But <a href="https://www.ft.com/content/a7dd933a-7e5c-11e9-81d2-f785092ab560">experts told the Financial Times</a> that the FAA appears to be changing its stance in light of concerns by other regulators. </p> <p><img src="https://static4.businessinsider.com/image/5cdc60a5021b4c7a9f1f3df3-1800/gettyimages-1149282513%201.jpg" border="0" alt="FAA house transportation committee daniel elwell" data-mce-source="Chip Somodevilla/Getty Images" data-mce-caption="Daniel Elwell, acting administrator of the Federal Aviation Administration, talks to the parents of Ethiopian Air crash victim Samya Stumo before the House Transportation Committee holds a hearing on the Boeing 737 Max on May 15, 2019."></p> <p><span>Elwell told global regulators last week that simulator training is a possibility, the FT reported. </span></p> <p><span>A representative of an unnamed large US pilots union told the FT that Elwell is "trying to be responsive to what other countries are feeling — and they may be feeling political pressure. That's why he's vacillating."</span></p> <h2><span>Different regulators could have different requirements</span></h2> <p><span>Elwell signaled last week that it would benefit the FAA if other regulators approved the 737 Max at the same time. </span></p> <p><span>"If they unground relatively close to when we unground, I think it would help with public confidence," he said.</span><span></span></p> <p><span>But Europe has <a href="https://www.businessinsider.com/boeing-737-max-europe-requirements-plane-return-2019-5?r=US&IR=T">outlined its own demands that must be met</a> before the plane can return, including that the crews flying the planes are "adequately trained." The European Aviation Safety Agency (EASA) did not outline what that training would entail.</span></p> <p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/boeing-737-max-europe-requirements-plane-return-2019-5" data-analytics-position="3">Europe has outlined its own demands for letting Boeing's 737 Max return to the skies, instead of relying on the US</a></em></p> <p>And Canada, which also said it would have its own requirements, <a href="https://www.reuters.com/article/us-ethiopia-airplane-canada/simulator-training-remains-possible-option-for-boeing-737-max-pilots-in-canada-idUSKCN1SU03I">said last week</a> that simulator training was a "possible option" for 737 Max pilots.</p> <h2>Pilots were not trained on simulators before the two deadly crashes</h2> <p>Training with a simulator is expensive and time-consuming, with the FT reporting that the simulators can cost up to $15 million and an hour's training can cost up to $1,000. </p> <p><img src="https://static2.businessinsider.com/image/5c9b51177563b07c1211a696-1800/2019-03-13t045743z2063587879rc18f74e5190rtrmadp3ethiopia-airplane-india.jpg" border="0" alt="Boeing 737 Max 8 cockpit" data-mce-source="REUTERS/Abhirup Roy" data-mce-caption="The cockpit of Boeing 737 MAX 8 aircraft in June 2018."></p> <p>Pilots unions <a href="https://edition.cnn.com/2019/03/22/us/max-8-boeing-self-administered-courses-lion-air-ethiopian-airlines-intl/index.html">told CNN</a> that 737 Max pilots were trained with a self-administered online course that took a maximum of three hours and was conducted on iPads.</p> <p>The lack of simulator training was initially seen as a benefit for Boeing, which designed the plane with a minimum of changes compared to other 737 models in an attempt to appeal to airlines that didn't want to undertake expensive and time-consuming pilot training.</p> <p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/boeing-audio-737-max-safety-feature-optional-might-confuse-pilots-2019-5" data-analytics-position="3">Taped conversation shows Boeing execs downplaying importance of absent safety feature on 737 Max</a></em></p> <p>The preliminary investigations into the two crashes identified an issue with the planes MCAS software system. In both the Lion Air crash in October 2018, which killed 189 people, and the Ethiopian Airlines crash in March 2019, which killed 157 people, the nose of the plane repeatedly pointed down and could not be controlled by pilots.</p> <p>Pilots say they were not informed about this system in training, a move that Boeing defended after the first crash by telling pilots that "we try not to overload the crews with information that's unnecessary."</p> <p>Boeing CEO <span>Dennis Muilenburg also <a href="https://www.businessinsider.com/boeings-ceo-on-why-737-max-pilots-not-told-of-mcas-2019-4?r=US&IR=T">defended the communication about the system</a> after the second crash by  saying it was "embedded" into the way pilots handled the plane, and so "when you train on the airplane, you are being trained on MCAS."</span></p> <p><span><img src="https://static1.businessinsider.com/image/5ce6574cb8cb3722297a7323-1800/boeing%20737%20max%20ceo.jpg" border="0" alt="Boeing CEO Dennis Muilenburg" data-mce-source="Jim Young-Pool/Getty Images" data-mce-caption="Boeing CEO Dennis Muilenburg at a press conference after Boeing's annual shareholders meeting in Chicago in April."></span></p> <p>"It's not a separate system to be trained on," he said.</p> <p>Pilots from the union representing American Airlines pilots told Boeing after the first crash that they wanted more information about MCAS and the 737 Max, <a href="https://www.businessinsider.com/boeing-played-down-737-max-second-crash-concern-pilots-audio-reports-2019-5?r=US&IR=T">a recording shared with Business Insider by the union showed</a>.</p> <p>"We flat out deserve to know what is on our airplanes," one pilot said. </p> <p>Boeing says that it is working with closely regulators and that the plane will be one of the safest planes ever to fly when it returns.</p> <p><em><strong>Do you work at Boeing or the FAA, or are you a pilot? Got a tip or a story to share?</strong> Contact this reporter via encrypted messaging app Signal at +353 86 335 0386 using a non-work phone, or email her at sbaker@businessinsider.com, or Twitter DM her at @sineadbaker1.</em></p><p><a href="https://www.businessinsider.com/boeing-737-max-questions-over-simulator-training-could-delay-return-2019-5#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/slabs-swangas-custom-cars-houston-hip-hop-culture-2019-5">The history behind 'slabs,' the custom cars with an important place in Houston's hip-hop community</a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?i=D6rRBT4x66s:D2PQqZx0wcs:V_sGLiPBpWU" border="0"></a> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?d=qj6IDK7rITs" border="0"></a> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?d=bcOpcFrp8Mo" border="0"></a> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:gIN9vFwOqvQ"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?i=D6rRBT4x66s:D2PQqZx0wcs:gIN9vFwOqvQ" border="0"></a> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:cGdyc7Q-1BI"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?d=cGdyc7Q-1BI" border="0"></a> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:QXVau8BzmBE"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?d=QXVau8BzmBE" border="0"></a> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?d=yIl2AUoC8zA" border="0"></a> <a href="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?a=D6rRBT4x66s:D2PQqZx0wcs:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/typepad/alleyinsider/silicon_alley_insider?d=7Q72WNTAKBA" border="0"></a> </div><img src="http://feeds.feedburner.com/~r/typepad/alleyinsider/silicon_alley_insider/~4/D6rRBT4x66s" height="1" width="1" alt=""></div>
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