Amazon Prime Video Ads

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 Videos ad revenue in 2024 range from $3B Bank of America to $6B UBS.