Amazon is planning to launch an ad-supported tier of its Prime Video streaming service as it looks to further build its ad business and generate more revenue from entertainment. Advertising has been an area of continued growth for Amazon despite macroeconomic challenges. The company’s ad revenue was $9.5 billion in the first quarter, up 21% year over year. With an ad tier for Prime, Amazon would be following similar moves made recently by Netflix and Disney.
The slowdown in International Longshore and Warehouse Union work at West Coast ports has created a congestion contagion that is spreading to freight railroads. The latest labor issues began last Friday at The Port of Oakland, which was entirely shut down. That port processes less railroad freight compared to the ports of LA and Long Beach, but there is concern inland port intermodal freight will be hit next.
Futures are mixed after stocks closed mixed yesterday. The Dow Industrials gained 91, but the Nasdaq fell a sharp 171 and the S&P 500 lost 16.