Oct. 10, 2024
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.