Amazon will soon increase the number of ads on its Prime Video streaming service, starting early next year. According to a report from the Financial Times, this move is part of the company’s ongoing effort to attract more brands and advertisers as it pushes deeper into ad-supported streaming. This follows Amazon’s introduction of ads to Prime Video less than a year ago, a shift that has not caused significant cancellations among subscribers.
Kelly Day, Vice President of Prime Video International, revealed that Amazon plans to expand ad slots in 2025. Speaking ahead of a presentation to advertisers in London, Day mentioned that the company started with a light load of ads to ease customers into the experience. The gradual approach, she said, has worked better than expected, with minimal churn, meaning few subscribers have canceled their service due to the ads. Day emphasized that although there was concern about potential backlash, subscriber numbers have remained stable, and the company’s efforts to introduce ads have been well-received.
Amazon’s ad-supported service is now used by 19 million viewers each month in the UK and has a global reach of 200 million potential viewers, with over half of them located in the US. Day pointed out that the service automatically switched all global Prime subscribers, which total more than 200 million, to the ad-supported tier unless they chose to pay extra for the ad-free option.
Amazon Sees Growth in Ad Revenue
Advertising has become a growing revenue stream for Amazon. In fact, the company secured over $1.8 billion in advertising commitments during a recent event and saw its digital ad revenue rise by 20% to $12.8 billion in the second quarter of 2024. The upcoming year will also see Amazon introduce interactive, “shoppable” ads. These ads will allow viewers to add items to their carts or learn more about a brand without leaving the show they are watching by simply using a remote or mobile device.
Amazon remains committed to investing in content for Prime Video, including live sports and original programming. Day mentioned that spending on content has increased, including coverage of live sports such as the National Football League’s Thursday Night Football, and even live news coverage of the upcoming US election.
In terms of entertainment, popular series like Mr. & Mrs. Smith, Fallout, and Rings of Power have driven viewer growth, and Amazon is gearing up for more big releases next year, including new shows and films starring Will Ferrell and Reese Witherspoon.
