Amazon says 130 million U.S. customers are watching Prime Video with ads

Core Insights - Amazon's Prime Video streaming service with ads has reached over 130 million U.S. customers monthly, marking an increase of 15 million from 2024 [1][2][3] Group 1: Service Overview - Prime Video introduced an ad-supported version last year, allowing subscribers to pay an additional $2.99 per month for an ad-free experience [2] - The service features popular shows such as "The Summer I Turned Pretty," "The Lord of the Rings: The Rings of Power," "The Boys," and "Reacher," along with interactive content like "Making the Cut," where viewers can purchase featured clothing on Amazon [4] Group 2: Advertising Strategy - Amazon is leveraging new ad formats, including AI-generated messaging that tailors ads based on customer viewing habits, aiming to drive measurable actions both on and off Amazon [5] - The company believes it is uniquely positioned to connect content to customers, with an average of 88% of Prime Video viewers also shopping on Amazon [3] Group 3: Industry Context - The streaming industry is experiencing a shift, with many platforms that previously offered ad-free content now introducing cheaper subscription plans with commercials to boost revenue [6] - Netflix's introduction of an ad-supported subscription plan in 2022 reflects the growing pressure on streamers to enhance profitability, prompting them to explore various monetization strategies [7]