The coming addition of ads to Amazon Prime Video could generate as much as US$5bn in additional revenue, according to a Bank of America analysis.
Amazon is about to go the way of several other streaming services by adding commercial advertising to what is already a subscription service. Users will have the choice of paying extra for their service to stay ad free or pay nothing extra to accept advertising as a fact of life. The current price of Prime Video in Australia is $9.99 per month or $79 per year.
Amazon Prime Video
The Bank of America estimate was published by Bloomberg. It says Amazon will sell an extra US$3bn in video ads this year and generate US$1.8bn for subscribers who pay extra to avoid the ads. The estimate is based on 70 percent of Prime subscribers opting to watch ads, the report says.
The new plan will start operating internationally from February 5.
Amazon is not alone in introducing fees to avoid in-movie advertising. Netflix increased the price of its ad-free plan in October last year, while Disney+ increased its twice in 2023.
According to CNN Business, streaming services are no long chasing subscribers, but rather investors are pressuring them to make money from their services.
