Amazon’s pivot towards in advertising supported streaming video service could achieve $1 billion in revenues during its first year of operations.
Research firm MoffettNathanson is forecasting that Amazon has the potential to reach $1.7 billion in ad revenue next year, excluding revenues from Thursday Night Football, Twitch, or Freevee.
The parcels to entertainment company plans to introduce advertising from this Monday. MoffettNathanson describes this as a “savvy decision”, at a stroke providing a scale of 70 million subscribers.
Last year, Netflix added its Basic with Ads follow by a similar product from Disney+
Approximately 15% of US Prime Video households are expected to opt for a $2.99 monthly payment to avoid ads, contributing around $400 million in incremental subscription revenue to the service.
Taking spending on Thursday Night Football and Freevee into account, Amazon’s projected CTV and AVOD ad revenue for 2025 would be $4 billion, surpassing competitors like Hulu, Peacock, Roku, Paramount Plus, Tubi, and Pluto.
Netflix is expected to have ad revenues of just $400 million in 2025.
