HomeCorporate Profit Over Prime? Amazon Expands Ad Load Despite Customer ConcernsBlogCorporate Profit Over Prime? Amazon Expands Ad Load Despite Customer Concerns

Corporate Profit Over Prime? Amazon Expands Ad Load Despite Customer Concerns

Amazon Prime Video is set to increase its advertising load, according to a report from the Financial Times. This new ad initiative is expected to roll out early next year, just months after the streaming platform first introduced advertisements in 2023.

This decision underscores a growing trend among streaming services to monetize their platforms, even at the expense of user experience. While subscribers are already paying for Prime memberships, Amazon is betting that more ads will boost its revenue streams. As the trend continues, viewers may find themselves asking: “Isn’t it enough that I’m paying for this service?”

Amazon has made significant strides in the advertising realm, attracting over $1.8 billion in ad commitments during a preview event in September. The platform’s advertising tier reportedly reaches 19 million users monthly in the UK and over 100 million users in the US. Despite the overwhelming numbers, the specifics of how many new ads will be integrated into programming—like the next episode of Reacher—remain unclear. This uncertainty raises concerns, as modern streaming shows are not designed with ads in mind, resulting in disruptions to the viewing experience.

Kelly Day, vice president of Prime Video International, acknowledged the initial rollout of ads as a “very light load,” suggesting it was a way to ease consumers into the forthcoming ad-heavy model. She noted that the response was surprisingly positive, with no significant increase in subscription cancellations reported after ads were introduced.

An Amazon spokesperson reassured that their ad load would remain significantly lower than traditional television and other streaming providers. However, with the introduction of interactive advertising—where viewers can add items directly to their cart during a show—the lines between entertainment and commerce continue to blur.

For further details on this developing story, check out the article on Engadget. As Amazon explores new avenues for revenue, viewers may have to brace themselves for a new era of advertising in their beloved streaming content.