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There鈥檚 plenty of runway ahead thanks to Amazon鈥檚 introduction of ads on Prime Video shows and movies. It also began offering advertisers Sponsored TV, a self-service option that enables brands to create campaigns that can appear on over 30 streaming services, including Amazon Freevee and Twitch.

This year, Amazon Prime Video will amass 157.3 million US viewers, just over 13 million shy of Netflix鈥檚 170.6 million. By contrast, Apple TV+ has just over 42 million. 鈥淧rime Video has been around for a while, and is also bundled with a subscription service that is incredibly famous,鈥� said Goldman.

Amazon鈥檚 addition of ads to Prime Video could add up to $5 billion in annual revenues, with around $3 billion from video ads and $1.8 billion from Prime subscribers paying extra to avoid ads, per Bank of America analysis.

Walmart partners with Burger King to beef up Walmart+ perks: While the retailer focuses on appealing to its core customer base, Amazon makes a move for holiday and grocery sales.

Most crucially, Amazon Prime Video reported it will introduce ads in 2024, Walmart and NBCU announced a partnership, Roku inked a deal with Best Buy, and Kroger linked up with Disney. CTV ad spending will be nearly twice what we expected for 2025.

How Amazon Prime Video and Netflix are balancing subscription and ad revenue. 5 key stats on CTV: Growth normalizes, subscriptions reign, and ad spend evolves. Gen Zers鈥� Netflix use is catching up to TikTok use. US advertisers are pulling money from linear TV to increase programmatic CTV spend.

Amazon: Although Prime Video is ad-free, Amazon has been making an advertising push. It鈥檚 expanding targeting options for Thursday Night Football games, has added more free ad-supported streaming channels to Fire TV, and has moved many original programs to its free ad-driven service, Freevee.

The company joined other streaming services like YouTube and Amazon Prime Video in dishing out billions for sports rights when interest rates were much lower. Late to the frenzy: The changing financial realities of sports rights deals are made clear by FIFA鈥檚 Club World Cup struggles.

Over the last year, as costs for ad-free streaming subscriptions have increased, industry heavyweights like Netflix, Amazon Prime Video, and Disney+, have introduced ad-supported tiers. This offers a lower price point for those who may not otherwise be able to afford ad-free subscriptions, which deepens the pool of audiences advertisers can target.

The introduction of ads into Prime Video will cement Amazon as one of the largest digital video ad sellers. As CTV advertising diversifies, Amazon Prime Video is pushing ads. Amazon will see $3.13 billion in CTV ad revenues in 2024, according to our forecast.

Some years back, Amazon established a sizable user base there for its Prime ecommerce services, and many of those customers tuned in to Prime Video after its 2014 launch.

Amazon is transitioning Prime Video customers to an ad-supported tier by default on January 29, giving it a sizable audience from the start. Prime Video has a head start, benefiting from its experience with ads on Fire TV, Freevee, and on-demand sports, Benes said, unlike Netflix and Disney+, which were both new to introducing ads into their streaming services.

Ad revenues from Twitch, Freevee, Prime Video, and the Fire TV platform will total $4.72 billion this year, up 84.4% from 2023. That extreme spike mostly derives from Amazon switching all Prime Video users to ad-supported video-on-demand (AVOD) status in early 2024, but healthy OTT ad increases will continue beyond this year.

And the same thing I think we'll start to see happen in CTV where if you're in the middle of watching some show on Prime Video and you see an ad in the middle of the first commercial break, you can basically pop the Prime Video thing open, tap on what you were watching, and just essentially add the product that you saw advertised into your cart.

Prime Video users also sometimes find themselves watching Freevee without realizing it. However, given the major AVOD push coming from Prime Video, Freevee might eventually be rolled into Prime. Due to this uncertainty, we are not projecting Freevee鈥檚 viewership past 2024 for now. Read the full report, US OTT and Pay TV Viewership Forecast 2024.

It can鈥檛 boast the same audience sizes as Netflix and Prime Video, but users on the platform are incredibly engaged. From a scant 2 minutes in 2019, the average time spent will rocket to 19 minutes by 2025. Disney+ aside, the big subscription platforms are struggling to engage. Time spent on Netflix will level out at around 30 minutes per day, and Prime Video has leveled out at 11 minutes.

In September, Amazon announced that Prime Video will have ads by default beginning in early 2024 in the US, UK, Germany, and Canada. The move could shake up the market. Amazon estimated that ads on Prime Video will reach more than 115 million US viewers per month, according to a pitch deck obtained by Insider.

The additional spend is being allocated to new formats, like Prime Video ads, and features like Amazon鈥檚 data clean room鈥攈elping to crystallize Amazon鈥檚 retail media dominance. The big takeaway: The Big Spring Sale should keep Amazon鈥檚 flywheel humming along nicely.

For example, beyond access to exclusive sales, Amazon Prime offers a broad swath of perks, including fast, free shipping; a free Grubhub+ membership; Prime Video streaming service; Prime Music streaming service; and photo storage. Those perks have convinced 97.2 million US households to subscribe to Prime, per our forecast.

Netflix comes in second (173.7 million), followed by Amazon Prime Video (163.6 million), Hulu (130.7 million), and Disney+ (115.8 million). In time spent, Netflix takes the No. 1 spot, with viewers spending an hour per day on the platform, followed by Hulu (53 minutes), YouTube (50 minutes), Disney+ (23 minutes), and Prime Video (21 minutes).

But with Amazon now on the market with ads as the default for Prime Video, Netflix knows it has to do more than tout subscriber numbers to drive revenue growth.

The two companies are in talks to strike a partnership for a planned revamp of ESPN for streaming, which could involve a distribution deal via Amazon Prime Video or even a minority stake in the sports network, The Information reports. Disney is reportedly considering charging as much as $25 to $35 monthly for the new service.

Big platforms like Netflix, Disney+, and Amazon Prime Video have incorporated ad-supported tiers into their previously subscription-based approaches. We project connected TV (CTV) ad growth will reach 21.2% this year, outpacing the overall media market. CTV advertising is becoming synonymous with TV on the whole.

Disney+ and Amazon Prime Video vie for second place. Regionally, Disney+ is poised to become the second-largest paid streaming platform, behind Netflix. It quickly grew in popularity in countries like Mexico and Argentina since its regional debut in November 2020鈥攃oming in well ahead of HBO Max and Amazon Prime Video.