Prime Video’s Ad Tier Entry Makes Immediate Impact on Ad-Supported Streaming [Stream TV Insider]

Prime Video’s Ad Tier Entry Makes Immediate Impact on Ad-Supported Streaming [Stream TV Insider]

BY ADRIAN PENNINGTON

May 7, 2024 | The launch of advertising as the default on Prime Video has had an “immediate and dramatic impact” not just on Amazon’s streaming service but on the entire ad-supported subscription streaming ecosystem, according to Hub Entertainment Research in the firm’s latest churn study.

Hub’s quarterly TV Churn Tracker “provides the strongest evidence yet that the majority of consumers will opt for lower cost ad-supported video services over higher priced premium ad-free offerings,” the research firm contends.

Since launching ads in the U.S on January 29 as the default Prime Video tier Amazon has successfully converted 85% of its subscriber base, modeled by MoffettNathanson analysts in January to be around 70 million active households. Only 15% have opted to pay an extra $3 per month to get the service ad-free. Prime Video now has the highest proportion of any SVOD streaming service of subscribers on its tier with ads.

Read more on Stream TV Insider.

Related Articles:
Analyst: Netflix, Prime Video Well-Positioned to See Revenue Gains From Advertising Later This Year [Media Play News]