Beginning later this month, Amazon will introduce a limited number of advertisements to Prime Video subscribers in India. Viewers will have the option to pay an additional fee to maintain an ad-free viewing experience. Reports indicate that in certain regions, users have already begun encountering ads between content. Furthermore, speculation suggests that the company has heightened the frequency of these ads recently.
New Ad Load on Amazon Prime Video
A report from AdWeek highlights that Amazon has nearly doubled the amount of advertisements on Prime Video. When the advertising tier launched in 2024, subscribers were subject to two to three and a half minutes of ads per hour. This has reportedly increased to four to six minutes per hour. This uptick in ad content is believed to lower the CPM (cost per mille), the fee advertisers pay for every thousand views, thereby expanding the advertising space and encouraging more ad placements.
While more advertisements can boost revenue, they also pose a risk to the viewer experience, potentially leading to user dissatisfaction. The report points out that advertisers are keeping a close eye on how this surge in ad load could affect audience engagement, as a significant drop in viewership could raise concerns for Amazon.
Initially, Amazon maintained a lower ad load due to negative feedback from its user base regarding the ad tier. The company’s gradual increase in ads appears to be a strategic move to compete with other streaming services and maximize its extensive audience.
Despite the recent changes, the current ad load on Prime Video remains notably lower than that of conventional television, which often features 13 to 16 minutes of advertisements per hour. In comparison to other OTT platforms, Amazon finds itself in the middle of the pack, as services like Hulu, Tubi, and Paramount+ have heavier ad loads, while Netflix boasts the lowest volume of advertisements among major streaming platforms.
The report also mentions that Amazon informed investors about the ad load increase, although the company has not made a public statement. A spokesperson for Amazon has indicated that the company is focused on enhancing the advertising experience for users, rather than merely increasing ad frequency.
Earlier this year, Amazon Prime Video announced that starting June 17, all users would encounter ads while watching movies and TV shows. The pricing for Amazon’s Prime subscription in India remains unchanged at Rs. 299 per month, Rs. 599 per quarter, and Rs. 2,499 annually. Users wishing to view content without advertisements can choose to pay an additional Rs. 129 each month or Rs. 699 for the year.
