Designing a New Revenue Model

How I used Design Thinking to create a merchandising platform giving Prime Video subscribers an alternative to annoying ads.

Amazon Prime Merch

Amazon Prime Merch

Amazon Prime Merch

A case study in the development of a new Prime Video feature which could add additional revenue without frustrating users!

A case study in the development of a new Prime Video feature which could add additional revenue without frustrating users!

A case study in the development of a new Prime Video feature which could add additional revenue without frustrating users!

My Role: UX Research & Design, Brand Design, Prototype

Project: UX Team Design Challenge

Duration: 6 weeks, Mar - Apr 2024

Organizer: IterateUX

Tools used: Figma, ChatGPT, Google Forms & Meet, Zoom

The Problem

Amazon Prime subscribers need a way to seamlessly purchase items related to their favorite shows so they can enjoy shopping without interrupting their viewing experience.

Amazon Prime subscribers need a way to seamlessly purchase items related to their favorite shows so they can enjoy shopping without interrupting their viewing experience.

Amazon Prime subscribers need a way to seamlessly purchase items related to their favorite shows so they can enjoy shopping without interrupting their viewing experience.

The Context

A Quote from Business Insider

The golden age of streaming TV is over. 

Netflix revolutionized the way we watch television and movies. But the utopia of choice — watching what we want, whenever we want — could be waning. Ads are creeping in.

The golden age of streaming TV is over. 

Netflix revolutionized the way we watch television and movies. But the utopia of choice — watching what we want, whenever we want — could be waning. Ads are creeping in.

The golden age of streaming TV is over. 

Netflix revolutionized the way we watch television and movies. But the utopia of choice — watching what we want, whenever we want — could be waning. Ads are creeping in.

https://www.businessinsider.com/the-golden-era-of-streaming-is-over-heres-why-2022-12

Why Amazon Prime Video?

Assumptions:

  • Every subscriber is a shopper and a viewer

  • Recent introduction of ads is unpopular with subscribers

  • Amazon Video is looking for additional revenue generating opportunities and would be open to an alternative to introducing annoying ads.

Why Amazon Prime Video?

Assumptions:

  • Every subscriber is a shopper and a viewer

  • Recent introduction of ads is unpopular with subscribers

  • Amazon Video is looking for additional revenue generating opportunities and would be open to an alternative to introducing annoying ads.

Why Amazon Prime Video?

Assumptions:

  • Every subscriber is a shopper and a viewer

  • Recent introduction of ads is unpopular with subscribers

  • Amazon Video is looking for additional revenue generating opportunities and would be open to an alternative to introducing annoying ads.

The Process

The five stages of Design Thinking:

The Goal

Apply Design Thinking to test our assumptions and come up with some original ideas!



Apply Design Thinking to test our assumptions and come up with some original ideas!

And don’t forget to use the magic ingredient:

And don’t forget to use the magic ingredient:

And don’t forget to use the magic ingredient:

AI

High Fidelity Prototype Demo

Before I go into detail on the process, here's the final result.

I took a novel approach to show the interaction between the mobile app and the TV screen, simulating a user watching a show with phone in hand:

Like what you see?

Let's dive in to the process:

  1. Empathize

About Amazon Prime video

  • Video streaming service, for subscribers of Amazon Prime

  • Users can watch videos and TV shows on demand

Revenue sources
  • Subscriptions

  • Advertisements

  • Digital purchases and rentals

  • Merchandising

New Advertising model
  • Introduced Ad-supported video-on-demand (AVOD) model in 2024

  • Users can pay extra for no ads.

220m

Subscribers worldwide (est.)


$1,400

Average Prime member spends annually on Amazon


80%

Prime members who watch Prime Video


87%

TV viewers who watch with a second screen in hand

220m

Subscribers worldwide (est.)


$1,400

Average Prime member spends annually on Amazon


80%

Prime members who watch Prime Video


87%

TV viewers who watch with a second screen in hand

220m

Subscribers worldwide (est.)


$1,400

Average Prime member spends annually on Amazon


80%

Prime members who watch Prime Video


87%

TV viewers who watch with a second screen in hand

Service Findings

Amazon's Ineffective, Confusing X-Ray Feature

X-Ray is being used to promote products on the TV (left) and the phone (below).

X-Ray integrates show facts from the Internet Movie Database (IMDB).

Through interviews and research, we discovered:

  • X-Ray confuses many users and so they mostly ignore it

  • X-Ray has been enhanced to offer product suggestions while you watch

  • Few shows include product information

  • The buying process is convoluted

Questions raised:

  • Is this feature used?

  • Do users know it exists?

  • Do users find it intuitive?

  • Can it be improved upon?

Assumption Confirmed:

Amazon is using other methods of revenue generation to promote sales from its video streaming platform.

Observations:

  • The feature is not easily discovered by the user

  • It is not consistently available for all shows

  • Purchasing requires the user to follow a QR code on the TV or have the app installed.

It's confusing!

Example: Buy Lord of the Rings books from The Rings of Power.

How might we improve X-Ray features to provide eCommerce features that naturally attract the attention of users?

How might we improve X-Ray features to provide eCommerce features that naturally attract the attention of users?

How might we improve X-Ray features to provide eCommerce features that naturally attract the attention of users?

Value Proposition

Value to Amazon

  • Intuitive interface for buying

  • Increased revenue

  • Enhance the X-Ray feature to make it valuable

  • Innovative and inventive

  • Customer loyalty - human connection

Value to Prime User

  • New experience to discover products

  • Non-intrusive

  • Seamless shopping experience

  • Exclusive offers in TV shows

  • Cool merchandise related to shows they love

  1. Define

User Survey

Why a survey?

Knowing that we had a large target audience, we determined that we needed as wide a sample as possible. Surveying gives us an indication of which demographic groups within the vast Amazon Prime membership pool were best to design for.

We would be able to:

  • collect qualitative and quantitative data

  • validate our assumptions

  • discover subscriber pain points

  • find common issues with Amazon Prime and Prime Video services.

Participants

26 participants, 10 broad questions, prime members and non-prime members.

Responses

We asked Co-pilot to summarize the results:

AI

AI Response

“Based on the data you provided, the most frustrating causes of user interruption when viewing shows are:

Ads:
Many users expressed frustration with ads, especially those that can’t be skipped. They felt that these interruptions were wasting their time and were particularly annoyed if the ads were unexpected or poorly timed during the show...”

Qualitative

Ads that you can't skip, I feel frustrated and like it's just wasting my time

Ads that you can't skip, I feel frustrated and like it's just wasting my time

Ads that you can't skip, I feel frustrated and like it's just wasting my time

“this is equivalent of toy commercials during kid’s programming and candy on the checkout aisle at kids' eye level”

“this is equivalent of toy commercials during kid’s programming and candy on the checkout aisle at kids' eye level”

“this is equivalent of toy commercials during kid’s programming and candy on the checkout aisle at kids' eye level”

shoppable content is inevitable as media and merchandise converge...soon fans will appreciate early access and exclusive deals and immerse themselves in their in the favorite stories and characters”

shoppable content is inevitable as media and merchandise converge...soon fans will appreciate early access and exclusive deals and immerse themselves in their in the favorite stories and characters”

shoppable content is inevitable as media and merchandise converge...soon fans will appreciate early access and exclusive deals and immerse themselves in their in the favorite stories and characters”

Quantitative

73% prefer Subscription services over cable, satellite and network TV

73% prefer Subscription services over cable, satellite and network TV

73% prefer Subscription services over cable, satellite and network TV

85% of those with Ads would not pay more to remove them

85% of those with Ads would not pay more to remove them

85% of those with Ads would not pay more to remove them

90% of users are less tolerant of ads than they used to be.

90% of users are less tolerant of ads than they used to be

90% of users are less tolerant of ads than they used to be.

Empathy Map

What do Amazon Prime users Think, Feel, Say and Do?

This process helps us better empathize with users' experiences and preferences, guiding our product development efforts and persona creation.

Persona Definition

Designing for a global user base

Designing for an extremely large diverse user base like Amazon Prime is challenging:

  • The typical user is ‘everyone’

  • We decided to focus on a subset of the market with a strong desire to purchase, based on our research

    • a Millennial mother (Emily)

    • a GenZ male (Stuart)

Our Personas: Emily and Stuart

Key Persona Characteristics

Pain Points

Unwanted interruptions: Full-screen, un-skippable ads are not working for them

Lack of Control: Users pay subscription services for choice and convenience to watch what they want, when they want

Frustration at rising subscription costs without getting any more advantages

Feeling of getting forced to do something which is not their choice

The Problem Statement

Amazon Prime subscribers need a way to seamlessly purchase items related to their favorite shows so they can enjoy shopping without interrupting their viewing experience.

Amazon Prime subscribers need a way to seamlessly purchase items related to their favorite shows so they can enjoy shopping without interrupting their viewing experience.

Amazon Prime subscribers need a way to seamlessly purchase items related to their favorite shows so they can enjoy shopping without interrupting their viewing experience.

How Might We...

How might we add product discovery and placement without interrupting a subscriber's enjoyment of their viewing experience?

How might we add product discovery and placement without interrupting a subscriber's enjoyment of their viewing experience?

How might we add product discovery and placement without interrupting a subscriber's enjoyment of their viewing experience?

Something I learned

from the Define Phase IterateUX Webinar


For each Problem Statement (the what) come up with several How Might We? statements (the how).


This encourages the team to come up with different approaches to addressing the problem.

Something we learned

from the Define Phase IterateUX Webinar


For each Problem Statement (the what) come up with several How Might We? statements (the how).


This encourages the team to come up with different approaches to addressing the problem.

Something I learned

from the Define Phase IterateUX Webinar


For each Problem Statement (the what) come up with several How Might We? statements (the how).


This encourages the team to come up with different approaches to addressing the problem.

  1. Ideate

Crazy 8’s

We conducted a Crazy 8’s exercise, identified common themes and listed popular functions, then utilized a voting system to ensure team synergy.

  • Using mobile phone to control TV

  • AI search for products on screen

  • Points for buying merchandise

  • Push product suggestions & offers to user after watching show

  • X-Ray like feature focusing on product placement

  • VR Headset place ads and products beside the screen

  • Product notification products based on shows

  • AI Assistant

  • Search by listening

  • Radar

  • Movie Anatomy

  • Notified later using AI search

  • Search with remote control device

  • Search with voice recognition

  • Movie anatomy

Feature selection

These are the features we chose to expand and explore:

  • A companion mode to help users seamlessly find products featured onscreen while watching shows

  • A new feature to help users find & purchase products instead of pushing ads at the user

  • Integrated AI image search to find items in the Amazon catalog similar to those seen on screen

  • Seamless vendor push of related product deal suggestions to the user

Wireframes

We developed wireframes of the mobile interface and the TV app. This is where the concept of Amazon Merch was born.

Here's a very rough wireframe of the TV interface, showing how merchandise can be associated with the user's viewing history.

  1. Prototype & Test

Usability Test

Through moderated tests with 8 participants, we analyzed the effectiveness of our two flow prototypes:

  • Live experience while watching a show

  • Mobile purchasing experience after watching a show

Goals

The testing is designed to gain insights into user interactions and perceptions, ensuring a seamless and satisfying experience.

Participants

8 Amazon Prime Video members

Task
  • Open the Amazon Prime Video app, and find the new feature called “MERCH” to explore interesting topics and products related to the show.

  • Explore topics related to the show.

  • Find a product or item that interests you within the show.

  • Add the item to your wish list.

  • Purchase the product

Usability Feedback

Questions:

Questions:

What aspects of the prototype do you think work particularly well, and what areas could be improved?

Is there anything specific that would make you more likely to use the product in the future?

Success Metrics

Test Results

Testing identified that the task was not as intuitive as we might have thought. Users found the goal hard to achieve and made assumptions about the interface and the instructions we could not have predicted.

Metrics


Rate of Success:

33%

% of participants who completed the task successfully with no errors

Number of errors:

17

#errors participants made attempting the task


Time on task:

3 min Flow 1 (TV)

4 min Flow 2 (Mobile)

How long does it take to complete the task


Satisfaction rate:

3.4 / 5

How easy or difficult it was to complete the task

Metrics

Rate of Success:

33%

% of participants who completed the task successfully with no errors

Number of errors:

17

#errors participants made attempting the task

Time on task:

3 min Flow 1 (TV)

4 min Flow 2 (Mobile)

How long does it take to complete the task

Satisfaction rate:

3.4 / 5

How easy or difficult it was to complete the task

  1. Iteration

Brand Design

I created the Amazon Merch brand design to be immediately identifiable as part of the Amazon brand family. It feels friendly and cozy, like a warm, cheerful mug of hot chocolate!

Merch

Merch

Icon Evolution

M

M

M

M

M

M

The initial idea for the Merch icon was to create a currency symbol like a dollar sign but using an M. On reflection this started to feel busy and did not scale down well as more elements were included.
We really liked the idea of a mug, as merchandise is stereotypically a branded mug, pen or T-Shirt. The 'a-ha' moment came when adding the Amazon 'swish' arrow to complete the look. It just felt right!
Fun, clean, simple and appealing - and it fit right in with the brand.

Design System

Interface Design Commentary

The design of the app is intended to work to serve two user scenarios:

  • When browsing their viewing history for suggested products related to the shows they have watched

  • Simultaneously when watching a show on the Prime TV app

Linking the product deals to the viewing history creates a cognitive association. Users can come here to resume viewing and get distracted into buying on the way!

Merch Feature mode

One might expect to find Merch in the store, but the Store is for the purchase of streaming content. Merch is a new feature, so it should be dominant in the interface. It is given it's own place in the toolbar.

Merch shows the user's viewing history and associated merchandise. Product sponsors can push deals to the user, including product placement items.

User Psychology

Discoveries:

  • users often want to go back to what they were watching

  • they cognitively remember what they were watching recently.

Empathizing with user thought patterns:

  • "Remember that show we watched last week - did we watch the last episode?"

  • "Perhaps I can get gift ideas for my daughter based on that show she was watching?"

  • "I never did read the book - look it's on sale."

  • "That collectors item would look really cool on my home theater display shelf."

Merch Feature mode

One might expect to find Merch in the store, but the Store is for the purchase of streaming content. Merch is a new feature, so it should be dominant in the interface. It is given it's own place in the toolbar.

Merch shows the user's viewing history and associated merchandise. Product sponsors can push deals to the user, including product placement items.

User Psychology

We discovered:

  • users often want to go back to what they were watching

  • they cognitively remember what they were watching recently.

Putting ourselves into the minds of our users, these are some thought patterns they might have:

  • "Remember that show we watched last week - did we watch the last episode?"

  • "Perhaps I can get gift ideas for my daughter based on that show she was watching?"

  • "I never did read the book - look it's on sale."

  • "That collectors item would look really cool on my home theater display shelf."


Adding a control feature to Merch gives the users a reason to be here while they watch their favorite shows. It also creates a way to push special deals to the user.

Remote Control mode

The main theme of Merch is to bring attention to related products.

How might we make Merch appeal to the end user?
Reflecting on our findings, we introduced a Remote Control mode within the Merch tab, because:

  • users, like Stuart, want control

  • many users have their phone in hand while watching shows

The remote is a convenient feature which can also catch the purchasing attention of a multi-tasking, impulsive user while watching.

How It Works

When the user starts watching a show on TV, the app detects this and switches to Remote Control mode.

In this mode, two extra tabs appear, OnScreen and X-Ray, plus remote playback controls.

  • Live X-Ray features here make more sense as part of a remote companion mode on a mobile phone.

  • The user can use an AI image search to identify products on screen, and find similar products in the Amazon store.

  • Vendors can push sponsored product deals based on what they are watching.

Ergonomic Control Placement

Traditional wisdom might say the control buttons should be near the bottom within 'thumb reach', but placing them at the top is intentional:

  • a user with control does not want to accidentally interrupt the movie in a group setting.

  • the primary intent is for the user to browse and purchase related merchandise during the show. So in this case I want product selection to be within easy reach. Remote control is secondary.

Remote Control mode

The main theme of Merch is to bring attention to related products. How might we make the feature appeal to the end user?
How might we make Merch appeal to the end user?
Reflecting on our findings, we introduced a Remote Control mode within the Merch tab, because:

  • users, like Stuart, want control

  • many users have their phone in hand while watching shows

The remote is a convenient feature which can also catch the purchasing attention of a multi-tasking, impulsive user while watching.

How It Works

When a user starts watching a show on TV, the app detects this and offers to switch the user to Remote Control mode. In this mode, two extra tabs appear, OnScreen and X-Ray, plus remote playback controls, with which the user can control the playback, mute sound and turn captions on and off.

  • Live X-Ray features here make much more sense when part of a remote companion mode on a mobile phone.

  • The user can use an AI image search to identify products on screen, including any intentional product placements by sponsors. Once objects are identified, similar products are found in the Amazon store catalog.

Ergonomic Control Placement

Traditional wisdom might determine that the control buttons should be placed near the bottom within 'thumb reach', but placing them at the top is intentional:

  • a user with control does not want to accidentally interrupt the movie in a group setting.

  • the primary intent is for the user to browse and purchase related merchandise during the show. The main activity of the design is product discovery, not playback control. Having to reach over the playback controls could very well be problematic.

  1. Reflection

On reflection I realized the great potential for a more human centered product promotion model than traditional advertising.

So many opportunities to discover new things in iterations to come!

Learnings

Different classes of user have different expectations of technology:

  • Some are completely comfortable with an integrated experience

  • Some use one device at a time for a specific purpose

  • Some (typical younger generations) multi-task and have several devices at their fingertips

  • Users get frustrated if the technology does not allow them to recall past experiences

Next Steps

With so many directions we could go in and features we could explore, we would:

  • Determine which features are worth pursuing by doing extensive user research to determine what appeals to whom

  • Refine features and integrate them more smoothly into the prototype

  • Do extensive user testing and get detailed feedback