Amazon's ad strategy is evolving, as the company has yet to fully capitalize on Prime Video's ad potential, even after pushing subscribers onto ad tiers.
Despite an initial slower growth phase for ad revenue, Amazon remains committed to expanding its ad business, noting that it has surpassed its Prime Video ad-spending commitments for 2025.
While many subscribers may have adjusted to ads on Prime Video, there's a delicate balance for Amazon in managing subscriber expectations and preventing ad fatigue.
Ad tiers represent a significant opportunity for streaming services, making up 38 percent of the market and driving over half of new subscriptions in early 2024.
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