Julia Stoll
Research expert covering TV and video media
Amazon Prime Video - statistics & facts
Watching series and films at any time, without advertising and for little money – that was the promise with which streaming services competed for customers since the 2010s. However, as it became clear that there is no viable business model behind this promise, companies are increasingly recognizing the value of ad-supported video-on-demand (AVOD). Amazon is the latest company that launched an ad-based model for its video streaming service Prime Video in early 2024 for selected markets.
As Prime Video’s content portfolio keeps growing and the newly-added revenue stream supports this trend, the platform will likely become a profitable business on its own and thus, be able to compete with other streaming providers in the near future.
Prime Video switches on ads
Initially introduced in the U.S., UK, Germany, and Canada, the ad-tier of Amazon Prime Video comes at no extra cost and will be the default option for watching content on the platform. If subscribers, however, opted for a commercial-free version, they must pay an additional fee – 2.99 U.S. dollars per month for U.S. Prime members. According to a global survey conducted in October 2023, over one in three respondents support Amazon’s decision to launch an ad-supported tier, demonstrating that many consumers see the benefits from it. It leads to an engaging viewing experience, as streaming ads are personalized and targeted to the individual viewer. Furthermore, with higher ad revenues, the ad-supported model also helps Amazon to further invest in its programming.An ever-increasing content repertoire
With Amazon Prime Video occupying the second position in the growing subscription video-on-demand industry, the company directly competes with other providers, such as Netflix, Disney+, and Max. In the last few years, production and marketing expenses of the leading services have run into the millions. For example, Amazon spent its ever-increasing content budget on originals, such as “The Lord of the Rings: The Rings of Power,” as well as on live sports, with NFL’s Thursday Night Football being the most recent addition to the large catalog. In addition to its exclusive programming, the e-commerce giant has also continuously increased its selection of TV shows and movies. Movies are the most common content type available on Amazon Prime Video. In the United Kingdom for example, the offer included nearly 14,500 movies as of February 2024, which is an 89 percent share of the whole content provided by the service. And due to its merger with MGM Studios, Amazon’s library has recently increased even further, now including MGM’s collection of over 4,000 movies and 17,000 TV shows.As Prime Video’s content portfolio keeps growing and the newly-added revenue stream supports this trend, the platform will likely become a profitable business on its own and thus, be able to compete with other streaming providers in the near future.
