Amazon first introduced an internet video service in 2006 (Amazon Unbox) but added the perk of free access to “unlimited, commercial-free instant streaming of more than 5,000 movies and TV shows” to paying Prime members in February of 2011.
12 years later, Amazon has walked back the "commercial-free" part. Amazon rolled out ads in its Prime Video streaming service on Jan 29 2024, after announcing the change in September. Customers can pay an extra $2.99 per month for an ad-free experience.
This move aims to unlock a massive audience, with a whopping 115M monthly viewers in the US alone. Amazon used this pitch deck to sell ad placements on Prime Video to advertisers. The $36 CPM (cost per thousand impressions) stands out as a relatively high point of entry compared to other platforms. Forecasts for Prime Video's ad revenue in 2024 range from $3B (Bank of America) to $6B (UBS).
2024 • Advertising
Amazon Prime Video rolled out ads in January 2024 with this pitch deck.
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