The news: Amazon launches its ad-supported tier for Prime Video today—but before it conquers the streaming world, it might experience some growing pains.
Moment’s pause: While some large TV advertisers are holding off until the next ad-buying cycle, Amazon has managed to secure early commitments from brands excited to expand their visibility on Prime Video.
Why it matters: Amazon joins the growing AVOD market at a strategic moment as the industry leans more toward ad-supported models.
Will it work? Amazon could struggle to attract Prime members to its ad-free option, as a CivicScience report indicates less than 10% are considering the upgrade.
Our take: Prime Video's ad debut, bolstered by Amazon's commercial prowess and broad reach, is poised to be a significant and potentially disruptive force in streaming advertising. It could redefine industry standards and pricing structures as Amazon goes after a larger share of the advertising market.