Amazon has announced plans to significantly increase the presence of ads on its Prime Video platform by 2025, following months of testing. Despite initial concerns that ad-supported streaming could lead to subscriber losses, Amazon has observed that most users have continued watching without significant cancellations. This positive response has emboldened the company to move forward with a more ad-heavy model as part of its long-term growth strategy.
The decision is primarily motivated by the potential for increased revenue. With rivals such as Netflix, Disney+, and Max already offering ad-supported tiers, Amazon sees an opportunity to expand its own advertising initiatives. One key element of this strategy is the introduction of interactive, shoppable ads designed to allow viewers to engage directly with products featured in the commercials. For example, viewers may be able to click on items in ads and instantly add them to their Amazon shopping cart, making the ad experience more engaging and personalized rather than a passive interruption.
Currently, the ad load on Prime Video remains relatively light, resembling traditional TV commercial breaks without overwhelming the viewer. However, for those who prefer an uninterrupted experience, Amazon continues to offer an ad-free tier for an additional fee. Interestingly, a majority of Prime Video subscribers have not opted for this ad-free option, suggesting that ads are not a major deterrent for most users.
Amazon’s gradual ad increase is expected to ramp up more noticeably by 2025, aligning with the company’s broader efforts to grow its advertising business and attract more brands. This strategy was revealed at Amazon’s “Upfront” event in London, where the company outlined its vision for the future of advertising on Prime Video. By introducing more interactive and targeted ads, Amazon aims to boost its ad revenue while maintaining viewer engagement, positioning itself more competitively alongside other leading streaming platforms.
