Amazon is set to generate more than $2bn in incremental advertising revenue this year, following the launch of an ad-supported tier on its streamer Prime Video last week, according to research from analyst group Omdia.
This will be in addition to revenue already generated by the sale of advertising slots during live sports broadcasts on the Gen V and Reacher streamer.
The main difference between Prime Video’s advertising strategy compared to other major streamers such as Netflix is its subscription model. Amazon will place all current users into the ad-supported tier of its service, giving subscribers the option to pay extra to view without advertising.
Netflix users, meanwhile, all begin in the non-ad-supported tier and have the option to pay less for a service that incorporates advertising.
