Amazon Prime service to generate over $2B in additional ad revenue in 2024 – Omdia

LONDON – Following the debut of Amazon's ad-supported Prime Video service this week, new and exclusive analysis from Omdia reveals the streaming platform is set to generate more than $2bn in incremental ad revenue in 2024, its launch year. This will be in addition to revenue already generated by the sale of advertising slots during live sports broadcasts on the service.

Amazon Prime has successfully built a strong subscriber base of over 200 million due to the range of services it offers, including an extensive shopping range, free shipping, music, and cloud services. These services allow Amazon to remain competitive and continue to attract and retain customers.

The main difference between Amazon Prime's advertising strategy compared to other players such as Netflix is the subscription model. Amazon will place all current users into the ad-supported tier of its service, giving subscribers the option to pay extra to view without advertising. Netflix users all begin in the non-ad-supported tier and have the option to pay less for a service that incorporates advertising.

Omdia's research also considers the introduction of new services by Amazon's ad-supported Prime Video, including shoppable TV. This feature allows viewers to directly purchase products they see in shows or movies, creating a new avenue for e-commerce within the streaming platform.

Read the full press release here.

Omdia