Bad news for Amazon Prime viewers as video advertisement rules are set to change. According to the Financial Times, Amazon Prime Video will be increasing the number of adverts shown starting next year. This includes inserting ads in the middle of TV shows, a new move for the streaming service which previously only featured ads at the beginning.
Amazon introduced adverts into its content eight months ago, even for subscribers to the paid service. Users have the option to pay an additional fee to remove the ads. Despite this change, Amazon has not observed a significant decrease in the number of subscribers. Kelly Day, vice-president of Prime Video International, stated that there will be more advertising spots within content from 2025, with interactive ads that allow viewers to make purchases directly from the adverts by using their remotes or scanning with a phone.
Unlike other platforms like Disney+ and Netflix, where cheaper subscriptions with ads are available, Amazon took a different approach by including all viewers in the ad experience unless they opt to pay more to avoid them. Kelly Day mentioned to the Financial Times that the implementation of adverts went better than expected and they have not witnessed a significant number of cancellations or people leaving the service. In the second quarter of 2024, Amazon generated $12.8 billion from digital advertising.
The changes in Amazon Prime Video’s advertisement strategy may impact how viewers interact with content on the platform in the future. Stay tuned for further developments as the company seeks to boost revenue through this advertising initiative.