Amazon Prime Video switches on advertising

Jack Reacher (Source: Amazon Prime Video)

Amazon Prime Video has debuted ads in the US, with a UK launch to follow next month.

US customers of Amazon Prime must now pay an additional US$3 to receive an ad-free streaming video service, on top of the US$139 a year they already pay for the overall Amazon Prime service.

Analysts at MoffettNathanson have predicted that Amazon’s ad play could bring in US$2 billion in 2025.

The launch of ads as a standard feature means that all top five streaming services in the US now include an ad-supported tier. However, Amazon stands out by making an ad-supported tier the default option for subscribers rather than by offering a cheaper offering with ads, as Netflix did. (Netflix is however now in the process of withdrawing without-ads basic offerings in key markets including the US).

Among the major streamers, Apple TV+ remains a holdout, with Netflix, Disney+, Max and Paramount+ all having succumbed to the temptation to increase revenues through advertising as subscriber growth slows.