Amazon’s Prime Videos, Prepare to Increase Users’ Ads, Grow Video Ads Business

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The streaming giant says it’s taken a gradual approach to introducing ads on the platform so far.

Prime Video is getting ready to increase the number of ads it serves to users after incorporating them for the first time in January 2024.

Luckily for some, the increase in ad slots isn’t set to come into effect until sometime in 2025.

Amazon rolled out ads to all Prime Video subscribers earlier this year and forced people to pay an extra $2.99 per month to get rid of them. In a recent interview with The Financial Times, the company said that despite fears at the time that the change would put off users, Prime Video has not seen a significant decline in users since making the move.

Kelly Day, vice president of Prime Video International, explained that the company took a gradual approach to introducing advertisements. It started with a “very light ad load” to give its subscribers a “gentle entry into advertising,” she said. That included not serving ads in the middle of its programming.

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When asked how many extra ads viewers might see, an Amazon spokesperson said: “We have not changed our plans to have meaningfully fewer ads than linear TV and other streaming TV providers, and evaluate advertising volumes to help ensure we’re delivering a great customer experience.”

In a January email to customers in January, Amazon said introducing ads would allow it “to continue investing in compelling content.” It hasn’t shied away from investing big bucks in original content. The Lord of the Rings: The Rings of Power, for example, reportedly cost over $715 million to make—one of the most expensive single TV seasons of all time.