Starting Monday, Amazon Prime Video OTT users will experience something for the firs time: commercial Ad breaks during movie and TV show streaming.
This rollout initially applies to countries like the USA, UK, Germany, and Canada, with India excluded from the initial phase.
Users who prefer an ad-free experience will need to pay an additional $2.99 per month on top of their regular subscription fees.
Morgan Stanley predicts that Prime Video ads will generate $3.3 billion in revenue worldwide in 2024, growing to $5.2 billion in 2025 and $7.1 billion in 2026.
One significant advantage for Prime is that its customers primarily use the platform for shopping. This move is unlikely to trigger mass cancellations, making it a strategic move for Amazon, unlike other streaming services where it could be a risky move.
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