In 2025, Amazon.Com Inc's (NASDAQ:AMZN) Prime Video in India will introduce limited advertisements in its shows and movies to support ongoing content investments.
The company plans to include fewer ads than traditional TV and streaming services. Prime members will also have the option to choose an ad-free version, with pricing details to be shared later.
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Prime membership prices will remain unchanged, and Prime Lite subscribers will not be affected by this change.
Amazon's move marks its intense rivalry with Reliance and Walt Disney's Co's (NYSE:DIS) $8.5 billion merger, which can potentially win 50% of India's streaming users, Bloomberg cites data analytics firm Comscore.
Amazon remains heavily invested in India as Amazon Prime Video gained traction in the land of 1.4 billion population.
Previously, Amazon Prime Video aimed to undercut Netflix on advertising pricing to win market share.
Recently, Kelly Day of Prime Video International told Amazon that in 2025, it would place more advertisements on Prime Video shows and movies, following similar strategies from Netflix Inc (NASDAQ:NFLX) and Disney+. The company gradually retracted from its "meaningfully fewer ads" plans than its competitors.
In January, Citi estimated that Prime Video could generate over $5 billion in high-margin advertising revenue.
Amazon's digital advertising business revenues increased 20% to $12.8 billion during the second quarter of 2024.
Amazon's pureplay streaming rival, Netflix, has gained 95% in stock value in the last 12 months. Meanwhile, Amazon, an e-commerce and cloud juggernaut, gained slightly above 40%.
Price Action: AMZN stock is down 0.86% at $186.09 at the last check Wednesday.
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