Shawn Knigh

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Why it matters: Amazon followed through on its promise to introduce ads to television shows and movies earlier this year, infusing Prime Video content with a starter dose of commercials. The e-commerce giant expected some churn – that is, people to leave the service – but was surprised when subscriber numbers weren't really affected.

Armed with the win, they're planning to open up more ad slots in 2025.

Kelly Day, vice-president of Prime Video International, told the Financial Times that Amazon intentionally launched its ad push in January with a light load in an effort to avoid overwhelming customers.

If you recall, ads hit the service on January 29. All of the company's more than 200 million global subscribers were put on the ad-supported tier although for $3 more per month, customers can opt out of the ads.

Amazon also quietly stripped Dolby Atmos and Dolby Vision HDR support. These features are now locked behind the aforementioned $3 paywall. According to The Wall Street Journal, current Prime Video watchers on the ad-supported tier can expect between two and three-and-a-half minutes of ads per hour

Day didn't disclose how many customers have switched to the ad-free tier, but noted it was less than the 20 percent figure that some analysts had estimated.

Looking ahead to 2025, Day told the publication that Amazon will be opening up more ad slots to brands. It's a risky move with several potential outcomes, but one Amazon is prepared to embark on.

If done in a non-intrusive way, it's likely that customers will simply put up with it as they did with the first round. Too aggressive a push, however, could result in some users abandoning Prime Video – or worse, canceling their Prime membership out of spite.

The latter could very well come to fruition as Amazon is also planning to launch interactive, "shoppable" ads that allow customers to add items to their shopping cart right from their remote. For those that simply want to watch programming uninterrupted, this could be a deal breaker.

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"How much is too much?"
All the way till there are as many as current year TV has.
Seriously, is there a single human being that still
can watch a movie interrupted by 6 ads each 5 minutes?
It is inhumane. And I want to remind, TV ads amount grew too
as TV people have become more and more hungry for advertisers
money.
We have passed golden streaming years.
Next stop is lower tier streaming plan becoming unwatchable.
 
Amazon don't care one bit....they know they got you by the balls on your Prime Delivery subscription.
 
The only reason I kept Prime around was for the grad tour, which is now over. Also Clarkson's farm. I dropped it after the ads started showing up and still dont miss it. Now just to find the last Grand Tour episode on the High Seas.....
 
I think I'm about done with amazon prime. Price, price raise, adding ads, another price raise is likely coming. started at like $99.
 
Soon people will be nostalgic for the times when they could watch ads for free.
 
Good way to drive some users back to piracy I guess
 
Amazon don't care one bit....they know they got you by the balls on your Prime Delivery subscription.

I wish they would just offer the Prime Delivery without video service; even if it was only a penny cheaper I bet plenty of people would prefer that as an option.
 
I think I'm about done with amazon prime. Price, price raise, adding ads, another price raise is likely coming. started at like $99.
Maybe, other big resellers should unite and make their own same day delivery which they all will help finance. Then they would offer one joint prime which works on all of their online stores.
Amazon should not be alone collecting prime membership money.
 
The reason I purchased Amazon Prime was for free delivery and commercial free Streaming.
Now the turn around and want me to add an additional delivery charge on some items and I have to watch commercials before anything I want to stream.
Scam, scam, scam.
They don't make enough money, they want more and more and more.
 
I can understand a lot of ads on over the air TV, but if you're paying a yearly subscription there should be less.
 
I'm already acquiring my Prime Video content that I pay for by other means as I didn't pay for ads and I think anyone who has had Prime for 10+ years should be grandfathered in with no ads.
 
The only reason I kept Prime around was for the grad tour, which is now over. Also Clarkson's farm. I dropped it after the ads started showing up and still dont miss it. Now just to find the last Grand Tour episode on the High Seas.....
Don't worry mate...I can assure you that Clarkson's Farm is also available on the High Seas...
 

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