Amazon’s Prime Video has introduced a new ad tier, shaking up the streaming landscape. Unlike its competitors, Amazon is making the ad tier standard for all users, with an option to pay $2.99 extra for an ad-free experience. While some users are unhappy about the change, the additional revenue from ads could mean more engaging content in the future. CEO Andy Jassy is confident that Prime Video can be a profitable business on its own, especially with the boost from advertising revenue.
The move is expected to improve the profitability of Amazon’s video business, alongside growth in its cloud unit and e-commerce operations. With Prime Video’s large audience and potential for growth in streaming TV advertising, Amazon is positioning itself as a major player in the digital ad space. The company’s recent exclusive deals with the NFL for Thursday Night Football and playoff games show its commitment to sports content and innovative advertising formats.
Overall, Amazon’s Prime Video is evolving to offer a more compelling viewing experience for users, while also attracting advertisers looking to reach a large and engaged audience. The introduction of ads on the platform could be a game-changer for Amazon’s advertising-services business and its position in the competitive streaming market.