Amazon Prime Video Expands Ad Offerings Amid Streaming Competition

Amazon plans to increase advertisements on Prime Video in 2025, following initial success with its ad-supported tier.

Amazon will introduce more interactive ad formats, including shoppable and pause ads, to engage viewers and boost sales through its platform.
Despite initial concerns, subscriber retention has remained stable, with less than 20% opting to pay for an ad-free experience.
Prime Video's ad-supported tier reaches 19 million viewers in the UK and 200 million globally, showcasing significant audience engagement.
The increased ad revenue supports Amazon's investment in diverse content, including live sports and original programming.
Amazon's strategy contrasts with rivals by automatically enrolling users in the ad-supported tier, requiring an opt-out for ad-free viewing.