Advertisements start being distributed on Amazon Prime Video, what is the length of the advertisements and Amazon's profit prospects?



Amazon Prime Video has announced that it will start displaying advertisements when watching programs and movies in some countries. The introduction will begin on January 29, 2024, and the actual state of advertising and the expected revenue of Amazon, which aims to expand through advertising, have been reported.

Amazon Is Now Charging Prime Members Extra for Ad-Free Streaming. For Some, That's a Deal Breaker.
https://www.wsj.com/business/media/amazon-is-now-charging-prime-members-extra-for-ad-free-streaming-for-some-thats-a-deal-breaker-068d4896



Amazon Prime Video ads start from today – up to 3.5 mins per hour
https://9to5mac.com/2024/01/29/amazon-prime-video-ads-3/

Amazon Prime Video ads start from today – up to 3.5 mins per hour
https://9to5mac.com/2024/01/29/amazon-prime-video-ads-3/

In September 2023, Amazon announced a plan to ``introduce advertising when viewing content on Amazon Prime Video starting in early 2024.'' The initiative will begin in early 2024 in the US, UK, Germany and Canada, and will later be expanded to France, Italy, Spain, Mexico and Australia. At the time of article creation, it is unknown whether it will be introduced in Japan.

Ads will be added to dramas and movies distributed by Amazon Prime Video in some countries, additional fees will be required for no ads - GIGAZINE



After that, an email was sent to Prime members in December 2023 informing them that ``Advertising will start from January 29, 2024,'' and ``A monthly fee of $2.99 (approximately 430 yen) in addition to the Amazon Prime membership fee. For an additional payment, you can subscribe to an ad-free plan.''

'We aim to significantly reduce advertising compared to TV commercials and other streaming services,' the announcement said.

Amazon Prime Video will start displaying ads unless you pay an additional fee from January 2024 - GIGAZINE



In fact, from January 29, 2024, even Amazon Prime members will be able to receive advertisements when watching Prime Video, and when they access Prime Video, they will be able to choose between ``watch with ads'' and ``change to an ad-free plan''. A pop-up will now appear saying 'Upgrade.'




According to the Wall Street Journal (WSJ), in a presentation that Amazon gave to advertisers, it was announced that the amount of advertising would be ``2 to 3 and a half minutes per hour.'' As previously announced, this can be said to be ``significantly shorter'' than traditional TV and other services.

Also, regarding the form of advertisements, some are displayed for a few minutes before the movie or program starts playing, but there are also cases where the advertisement is interrupted while watching the movie or program.

There are more than 200 million Amazon Prime members worldwide, and according to WSJ, materials presented by Amazon to advertisers state that ``Amazon Prime Video ads reach an estimated 159 million viewers each month worldwide. It has been announced that the company is expected to reach This number significantly exceeds the ``approximately 23 million'' monthly users receiving advertisements announced by Netflix in January 2024. Justin Post, an analyst at Bank of America , said Amazon will generate '$3.2 billion in annual ad revenue' from Prime Video ads and '$1.6 billion in additional revenue from ad-free plans.' I have estimated that it is possible.

Amazon Prime subscribers exceed 200 million, an increase of 50 million in one year - GIGAZINE


by Stock Catalog | Flickr

WSJ features a number of opinions from experts who point out that increased advertising may make people not want to continue their subscriptions, as well as the voices of users who have actually canceled Amazon Prime. On the other hand, technology media 9to5Mac said, ``Most people subscribe to Amazon Prime not for Amazon Prime Video, but for things like free shipping, so I think there will be a lot of complaints about ads.'' 'However, very few people will cancel their subscriptions.'

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