Amazon Prime Video is set to increase the number of advertisements shown to its viewers, despite the initial public outrage when marketing was first introduced to the platform earlier this year. Customers were informed with just a one-month notice about the introduction of these new ads, which required an additional payment of £2.99 to opt out of.
According to Kelly Day, the vice president of Prime Video, the response from customers towards the ads has been positive, with a much lower-than-expected number of users deciding to leave their accounts. Less than 20 per cent of customers chose to pay the extra fee to remove the ads, as revealed by Day in an interview with the Financial Times.
Amazon plans to expand its advertising formats on Prime Video, including interactive features like “shoppable” formats that allow viewers to make purchases directly through Amazon. Additionally, they will introduce “pause ads” that appear when a show is paused, a strategy that has been successful for YouTube.
Initially, Amazon had assured users that the number of ads on the platform would be limited, stating they aimed to have fewer ads than traditional TV and other streaming services. The revenue generated from these ads is intended to fund more original programming on Prime Video.
In a bid to enhance its content offering, Amazon Prime Video is looking to introduce live formats such as sports and news coverage, including the upcoming US election. This move aligns with the broader industry trend of streaming services diversifying their content offerings.
The decision by Amazon to incorporate advertising on its platform follows a similar move by Netflix, which introduced an ad-supported tier earlier this year. The streaming giant reported growth in its subscriber base for this lower-priced subscription offering that includes advertisements.
As streaming services continue to evolve and compete in the market, the integration of ads on platforms like Amazon Prime Video reflects the changing landscape of digital entertainment consumption. Customers can expect to see more diverse content offerings and interactive ad formats as these platforms adapt to meet viewer preferences and industry trends.