Amazon Prime Video users may see an increase in ads while streaming videos on the platform sometime later this month. A new report suggests that Amazon will increase the ad load on Prime Video to reduce its CPM (cost per mille) and encourage advertisers to advertise more. Amazon is reported to have doubled the ad load from three and a half minutes per hour to six minutes per hour. This may disrupt users viewing experience and discourage advertisers even more.
A report by AdWeek claims that Amazon Prime Video will double its ad load to six minutes per hour from sometime later this month. Even after the increase, Amazon Prime Video ad load will still be lesser than many other OTT platform that have 13 to 16 minutes of ads per hour. Netflix is said to have least amount ad load among all streaming platforms. The increase in ad load results in lower CPM (cost per mille) which is nothing but the amount of money that the advertiser will pay per thousand impressions.
Amazon Ads spokesperson said, "We remain focused on prioritizing ad innovation over volume and Prime Video will now include limited advertisements. While demand will continue to grow, our commitment is to improving ad experiences rather than simply increasing the number of ads shown. We will continue to invest in this important work, creating meaningful innovations that benefit both customers and advertisers alike."
In 2024, Amazon began its ad tier with 3.5 minutes of ads per hour. It will now almost double it to six minutes in a bid to lure more advertisers. When Amazon introduced its ad tier last year, it kept it to the bare minimum due to the backlash it received from users. It now looks to gradually increase this to six minutes to fall in line and keep up with other OTT platforms that also take advantage of their user base. The report states that other OTT platforms like Hulu, Paramount+, and Tubi have heavier ad loads. Amazon Prime Video is bundle in the Prime subscription offered by the tech giant. The plans for Amazon Prime in India start with a price tag of Rs. 299 per month to Rs. 2,499 per year. There is an ad-free model that will require users to pay an additional Rs. 129 or Rs. 699 per year.
