Amazon Prime Video to Introduce Ads in New Markets by 2025 Amid Fierce Streaming Competition

October 16, 2024
Amazon Prime Video to Introduce Ads in New Markets by 2025 Amid Fierce Streaming Competition
  • Currently, Prime Video already features ads in several countries including the U.S., Australia, and the U.K., while offering users the option to pay for an ad-free experience.

  • This trend reflects a growing pattern among streaming services, including Netflix, to enter the ad sales market to offset rising content production costs.

  • Amazon has announced plans to introduce advertisements on its Prime Video streaming service in 2025, targeting markets such as Brazil, India, Japan, the Netherlands, and New Zealand.

  • Amazon promises that the number of ads on Prime Video will be significantly fewer than those found on traditional television and other streaming platforms.

  • While the existing Prime membership prices will remain unchanged in 2025, a new ad-free option will be introduced, with pricing details to be announced later.

  • This strategic move is part of Amazon's broader plan to fund content investments amid increasing competition in the streaming industry.

  • The company has successfully secured approximately $1.8 billion in upfront advertising commitments this year, driven by popular content and live sports.

  • The introduction of ads comes at a time when the subscription video-on-demand (SVOD) sector is facing challenges, particularly in competitive markets like India.

  • Ad slots are expected to appear between movies and shows, generating funds for new content investments.

  • Amazon plans to notify users about these changes several weeks in advance via email, including details on how to opt for an ad-free subscription.

  • Since launching ads on Prime Video earlier this year, Amazon has positioned itself as a leader in streaming advertising, helping brands achieve significant business results.

  • The company has also secured exclusive sports coverage, including NFL Thursday Night Football and an upcoming deal with the NBA, enhancing its advertising appeal.

Summary based on 6 sources


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