Amazon will start showing limited advertisements to Prime Video users in India later this month. Subscribers can choose to pay an extra amount to continue enjoying an ad-free experience. However, in some regions, Amazon has already started showing ads between content with a new report now claiming that the company has also increased the number of ads for users. This reported increase in ad load is expected to result in a lower CPM (cost per mille) or the amount of money advertisers pay for every thousand impressions.
Amazon Prime Video Increases Ad Load
According to a report by AdWeek, Amazon has increased the ad load on Prime Video, nearly doubling the amount. When it started an ad tier in 2024, users would reportedly get two to three-and-a-half minutes of ads per hour. Now, the amount of ads has increased to four to six minutes per hour, as per the report. More ads are said to lower the CPM and increase the ad space, encouraging more advertisements.
However, an increase in ads is also disruptive to the viewing experience, and it might annoy users. The report notes that the ad buyers will be mindful of how this increase in ad load is impacting user experience. If it drives a significant number of viewers away, it will be a cause for concern for Amazon.
Amazon initially had a lower ad load due to the backlash it received from introducing the ad tier, as per the report. The gradual increase is attributed to the company trying to keep up with other platforms and utilise its large viewer base more.
The aforementioned report notes that the increased ad load on Prime Video is still considerably lower than traditional television channels, which show about 13 to 16 minutes of ads per hour. Concerning OTT platforms, Amazon has reportedly managed to slot itself in the middle, as Hulu, Tubi, and Paramount+ have heavier ad loads. Netflix reportedly has the lowest ad volume among leading streaming platforms.
Further, the report claims that Amazon notified investors of the move to increase ad load but has yet to publicly acknowledge the move. The company has refused to directly comment on the matter, although a spokesperson reportedly said that Amazon is committed to improving the ad experience for users rather than only increasing the number of ads.
Amazon Prime Video had announced earlier this year that starting June 17, all users will see ads while watching films and TV shows. Amazon’s Prime subscription plan pricing in India — Rs. 299 per month, Rs. 599 per quarter, and Rs. 2,499 per year — remain unchanged. To continue watching without ads, users can pay an additional Rs. 129 per month or Rs. 699 per year.
