Ads on Amazon are set to increase after seeing that users have accepted this policy.
Just like Netflix or Disney+, Prime Video recently joined the trend of integrating ads at the beginning or in the middle of its content. These ads are shown by default for all basic Prime Video subscriptions, with an extra subscription required if users don’t want their series or movies interrupted by ads.
Similar to how Netflix benefited from this policy change, even though many thought it would lose subscribers, Amazon has managed to retain its subscriber base despite introducing ads. As a result, they are now planning to introduce even more ads starting next year.
Amazon Plans to Add More Ad Minutes to Its Content
Kelly Day, Vice President of Prime Video International, informed Financial Times that the number of ad spaces will increase starting in 2025. This move aims to accommodate more brands and, of course, generate more advertising revenue for Amazon.
This is a trend that has spread across the digital market. Recently, platforms like Netflix, Disney+, or Max have added ads in exchange for lower subscription fees. Surprisingly, users have accepted these ads, similar to traditional TV, generating significant advertising revenue—something highly sought after.
Amazon acknowledges that their initial approach to ads was quite soft, with a very low ad load. This helped prevent a significant user “shock.” But now, the full ad plan will roll out to match other platforms, as they haven’t seen “a wave of cancellations.”
What’s clear is that ads have become a major revenue source for Amazon. According to its own results, ads generated $12.8 billion in the second quarter of 2024, an increase of one-fifth compared to the previous year.
