Amazon Prime Video Increases Ad Load on Ad-Supported Tier
Amazon Prime Video has reportedly doubled the ad load for its ad-supported tier, now showing four to six minutes of commercials per hour. This increase aims to boost monetization and fund original content like ‘The Lord of the Rings: The Rings of Power’.
According to an Adweek report citing an email sent by an Amazon representative to an ad buyer, the ad load has been doubled from the initial two to three-and-a-half minutes promised when ads launched in January 2024. The latest move is part of Amazon’s broader push to monetize its streaming investment, which will help the company invest billions into original content.
An Amazon Ads spokesperson explained to TOI, “We remain focused on prioritizing ad innovation over volume and Prime Video will now include limited advertisements. While demand will continue to grow, our commitment is to improving ad experiences rather than simply increasing the number of ads shown.”
The increase in ad time is part of Amazon’s strategy to enhance its streaming service’s profitability. This move follows reports that Amazon would auction off ad spots and deploy more targeted, context-driven ads using its extensive consumer data. While advertisers may welcome these changes, viewers may see their experience as collateral damage.
Prime Video’s decision to increase ad load follows a similar path taken by its rival Netflix, which introduced an ad-supported tier to attract viewers deterred by price hikes. The report notes that streaming services often launch with generous pricing to outcompete rivals, then raise prices or increase monetization once they dominate the market.
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