Amazon’s Prime Video is now offering an ad tier, making it the next frontier for the company’s fast-growing advertising business. Unlike its streaming rivals, Amazon has made the ad tier standard for all Prime Video users, charging an extra $2.99 a month for access to the ad-free version. While some users have expressed displeasure on social media about having to pay for something they used to get for free, the additional revenue from ads is expected to provide more resources for Amazon to invest in engaging shows, movies, and live sports.
Amazon CEO Andy Jassy expressed confidence in Prime Video’s potential to be a profitable business on its own, especially with the introduction of the ad tier. The move is also expected to boost Amazon’s advertising-services business, which grew 26% year over year in the fourth quarter. With Amazon’s vast amount of consumer data and more than 200 million Prime subscribers, the company is well-positioned to capitalize on the growing trend of streaming TV advertising.
In addition to its advertising efforts, Amazon has been making strides in sports content, including an exclusive deal with the NFL to stream Thursday Night Football on Prime Video. The company’s recent NFL broadcasts have seen significant viewership gains and increased ad sales. Amazon is also exploring innovative ad formats, such as shoppable TV ads during live sports events.
Overall, Amazon’s expansion into advertising and sports content is expected to drive growth and profitability for the company in the coming years. With its unique position as a retailer with a significant content business, Amazon is poised to continue disrupting the advertising and streaming industries.