By asahifile 
Amazon to Increase Advertising Load on Prime Video in 2025
In a move that confirms the streaming giant’s commitment to monetizing content, Amazon will be ramping up advertisements on Prime Video starting in 2025. This decision comes in light of user tolerance towards the current ad load, as highlighted by Kelly Day, VP of Prime Video International, during a recent discussion with the Financial Times.
What’s Changing?
Prime Video subscribers currently experience a relatively light ad load since the introduction of its ad-supported tier earlier this year. On average, subscribers see between two to three and a half minutes of ads per hour. However, Day revealed that they plan to increase these slots next year, although specifics on the total increase were not disclosed.
Day described the initial ad experience as exceeding customer expectations while ensuring a seamless viewing experience. Presently, advertisers are not inserting commercials in the middle of shows, but future changes could alter that format.
Amazon’s Position in Streaming Ads
With more than 200 million monthly viewers, Amazon’s Prime Video has managed to retain subscribers without significant churn since ads were introduced. In fact, data from market research firm Antenna indicated that the number of users opting for an ad-free subscription dropped significantly over time.
Despite Amazon’s growing ad business, it has yet to fully capitalize on Prime Video’s advertising potential. Up until now, the majority of Amazon’s revenue from advertising has stemmed from its main e-commerce platform. Amazon has consistently offered more competitive ad pricing than services like Netflix, helping solidify its position in the advertising landscape.
Considerations for Subscribers
The proposed increase in ads may be met with mixed reactions. Some users may embrace this as a necessary trade-off for lower subscription costs, while others may feel overwhelmed, especially given the rising subscription costs and fluctuating content libraries. Viewer tolerance for ads could become a double-edged sword – too many ads might lead to “ad fatigue,” diminishing their effectiveness.
The Future of Ad-Supported Streaming
As streaming platforms adapt to profitability pressures, ad-supported subscriptions are projected to continue proliferating. They already represent a significant slice of the market, contributing to over half of new subscriptions in recent quarters.
Amazon’s strategic decisions in terms of ad load could set industry-wide benchmarks, prompting competitors to explore similar paths.
Conclusion
As Amazon implements these changes to its Prime Video advertising structure, the streaming landscape is likely to witness a notable shift. The company’s ability to navigate this transition will not only influence viewer satisfaction but may also resonate with industry trends focusing on ad revenues.
For continuous updates on Amazon’s streaming strategies and developments in digital advertising, follow our ongoing coverage.