Amazon Prime Video Ramps Up Ads, Taking on Netflix and Disney+ in Streaming Battle

Amazon.Com Inc AMZN targets more advertisements across its television shows and movies on Prime Video in 2025, taking a cue from Netflix Inc NFLX and Walt Disney Co DIS Disney+, the Financial Times cites Kelly Day of Prime Video International.

Day told FT that Amazon had ramped up spending on Prime content, including more on live sports rights, like its rivals.

Streaming rivals Netflix, Warner Bros. Discovery, Inc WBD Max, Paramount Global PARA Paramount+, and Disney+’s cheaper ad-supported tier bears testimony to the popularity that Amazon proposes to mint now.

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In January, Citi estimated over $5 billion in “high-margin advertising revenue” from Prime Video.

According to FT, Amazon’s digital advertising business revenues rose 20% to $12.8 billion during the second quarter of 2024.

Day told the FT that Amazon proposes to tap advertisers by showcasing its potential to reach about 19 million monthly British viewers, implying a third of the population.

Amazon’s ad-supported Prime Video tier had a global ad reach of 200 million, with more than 50% in the U.S. Amazon also eyes interactive and “shoppable” ad formats for Prime Video.

Netflix’s stock has increased 89% in the last 12 months. KeyBanc analyst Justin Patterson projected upside from its content slate, including National Football League games, “Squid Game,” and an upcoming price hike.

According to Statista, in the second quarter of 2024, Amazon Prime Video and Netflix’s subscription video-on-demand (SVOD) services had a market share of 22% each in the U.S. Netflix had 247.2 million subscribers compared to Amazon Prime Video’s 200 million, and Disney+ had 150.2 million, according to a Forbes report.

Walt Disney stock is up over 18%. The company’s 2024 blockbusters, including “Inside Out 2” and “Deadpool & Wolverine,” could boost its streaming service.

Amazon stock has grown by over 48% in the last 12 months thanks to its e-commerce and cloud businesses.

Price Action: AMZN stock is down 0.25% at $184.30 premarket at the last check Thursday.

Also Read:

• Amazon Vs. Disney: The E-Commerce Titan Takes On Mickey In Streaming Wars

Photo courtesy: Thibault Penin on Unsplash