Amazon to Expand Ads on Prime Video in 2025 Amid Growing Ad-Supported Streaming

Amazon is set to introduce more advertisements on its Prime Video platform, starting in 2025, as part of a broader strategy to increase ad-supported streaming.

Kelly Day, Vice President of Prime Video, confirmed in an interview that the company plans to add new ad slots, expanding on the “very light ad load” that launched earlier this year. This move comes as Amazon aims to attract more advertisers without significantly disrupting the viewing experience.

Since the introduction of ads on Prime Video in 2023, Amazon has seen limited subscriber churn, with fewer than 20% opting for the ad-free premium tier. According to Day, the initial ad experience has “exceeded customers’ expectations,” and Amazon has already surpassed its ad revenue goals for the year, thanks in part to live sports events like NFL’s Thursday Night Football.

In addition to more ad slots, Amazon is also planning to roll out interactive and “shoppable” ad formats, allowing viewers to engage with brands and products directly from their screens. These developments signal a growing trend in the streaming industry, where ads are playing an increasingly important role in revenue generation. Prime Video’s ad-supported tier follows in the footsteps of other platforms like Netflix and Disney+, which have also launched ad tiers to drive profits.

With a global ad reach of about 200 million viewers, Amazon is banking on continued growth in its ad business, which has become one of its fastest-growing revenue streams.

With input from PYMNTS, Financial Times, Ars Technica.