According to Kelly Day, VP of Prime Video International, Amazon is preparing to bring more ads to Prime Video. In an interview with Financial Times, Day said ads on Prime Video would "ramp up a little bit more into 2025."

Amazon first introduced ads on Prime Video in January this year, after it informed streamers in September 2023 that ads would be coming to the platform. The platform automatically includes all Prime Video users in its ad-supported tier, requiring them to opt-out if they prefer an ad-free experience. Viewers can also pay an extra $3 monthly to avoid ads.

Comparison with competitors

Prime Video isn't the only streaming service adopting an ad-supported model. Other platforms like Netflix, Hulu, Disney+, and HBO Max also have ad-supported options. Disney+ introduced its ad-supported tier in 2022, following HBO Max's similar move in 2021. 

Netflix also launched its ad-supported plan in 2022 for $6.99 a month. As of July 2023, new subscribers in the U.S. and U.K. no longer have access to its Basic plan. 

Netflix also phased out its cheaper ad-free option in the UK and Canada in July this year and has since secured 40 million active subscribers globally on this tier. However, Amazon Prime Video’s ad-supported plan boasts around 200 million subscribers globally, with 100 million viewers in the U.S. and 19 million in the U.K. 

Viewers of Amazon Prime Video in the U.K. surpasses competitors including Netflix and Disney+, which have only 2.78 million and 820,000 subscribers, respectively. 

With such a high viewer base, Amazon claims it is well-positioned to target the U.K. audience within the advertising market. Phil Christer, Managing Director at Amazon Ads in the U.K. said, “By combining award-winning TV series and films, billions of first-party signals, and leading ad tech, we are helping brands deliver relevant ad experiences at an entirely new scale.”

Recently, Amazon surpassed its $1.8 billion ad-spending target for 2024 streaming services, driven by ad placements on Prime Video and live sports broadcasts.  

Amazon’s new ad formats

According to the Financial Times, Amazon plans to introduce new ad formats next year to attract more advertisers. It will introduce interactive video ads that enable direct product purchases, interactive pause ads that engage viewers during breaks, and shoppable carousel ads for browsing multiple products during ad breaks.

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