Amazon plans to significantly increase ads on Prime Video by 2025, after testing ads over the past eight months and noticing that viewers are less bothered by them than anticipated. Despite concerns that ads might drive people away, Amazon has found that subscribers have continued streaming without significant cancellations. This has encouraged Amazon to push forward with a more ad-heavy model as part of a broader strategy.
The decision is driven by the potential for increased revenue. With competitors like Netflix, Disney+, and Max already adopting ad-supported tiers, Amazon sees an opportunity to enhance its ad strategy. The company is planning to introduce interactive, shoppable ads that allow viewers to engage directly with products during commercial breaks. For example, viewers may be able to click on items they see in ads and add them directly to their Amazon shopping cart. This approach aims to make ads more engaging and personalized, rather than just passive interruptions.
As of now, the ad load on Prime Video is relatively light, similar to traditional TV commercial breaks, but without overwhelming interruptions. Amazon is aware that some viewers might prefer to avoid ads entirely, and for those users, there is an option to pay extra for an ad-free experience. However, the majority of Prime Video subscribers have not opted for the ad-free tier, which suggests that ads aren’t a significant issue for most users.
Amazon’s gradual increase in ads is expected to ramp up more noticeably in 2025, coinciding with the company’s larger efforts to expand its advertising capabilities and attract more advertisers. The plans were revealed during Amazon’s "up front" event in London, where they showcased their vision for the future of advertising on Prime Video. This strategy aims to increase revenue while keeping viewers engaged with content, ultimately helping Amazon compete with other major streaming platforms.