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Oct. 10, 2024

Amazon Prime Video Ad Expansion

Amazon to increase ad levels on Prime Video.

Amazon has announced plans to increase the number of advertisements on its Prime Video streaming service starting in early 2025. This decision comes just eight months after the introduction of an ad-supported tier, which has reportedly been well-received by subscribers.

The move aims to boost Amazon’s revenue from advertising, which has already exceeded expectations with over $1.8 billion in commitments1. Prime Video’s ad-supported tier currently reaches 19 million viewers in the UK and over 100 million in the US each month. Despite initial concerns, the introduction of ads has not led to a significant decline in subscriber numbers.

Kelly Day, Vice President of Prime Video, mentioned that the ad load was initially kept light to ease subscribers into the new experience2. However, starting next year, viewers can expect more frequent ads, including interactive “shoppable” ads that allow users to add items to their cart without leaving the show.

This increase in ad frequency aligns with a broader industry trend, as other streaming services like Netflix and Disney+ also offer ad-supported tiers. While some subscribers may find the ads intrusive, Amazon believes the enhanced ad experience will ultimately benefit both viewers and advertisers.

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