Amazon is set to expand the number of ads on Prime Video by 2025, following eight months of testing. The company observed that viewers are less bothered by ads than initially expected, and the trial period saw minimal subscriber cancellations. Amazon plans to implement a more ad-focused model as part of its long-term strategy to enhance viewer engagement without negatively impacting its subscriber base.
Amazon's move to increase ads on Prime Video is largely influenced by the potential for boosting revenue. Following in the footsteps of competitors like Netflix, Disney+, and Max, which have introduced ad-supported tiers, Amazon is now enhancing its ad strategy. The company plans to roll out interactive, shoppable ads that allow viewers to engage with products during commercial breaks.
The company recognised that some viewers prefer an ad-free experience, Amazon offers the option to pay for an ad-free version of Prime Video. However, the majority of subscribers have not opted for this, indicating that the presence of ads isn’t a major concern for most users.
Amazon plans to gradually increase its ad presence, with a more noticeable ramp-up expected by 2025. This is part of the company's broader strategy to grow its advertising business, revealed during Amazon’s "upfront" event in London.
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