Amazon’s decision to convert its subscriber base to ad-supported by default is driving droves of eyeballs for advertisers.
According to a report from Digital-i, as of the end of Q4 2024, 88% of Amazon Prime Video subscribers globally are on an ad-supported tier, unless users pay an extra $3 monthly for an ad-free plan.
A different approach: Prime Video’s approach differs from typical ad-tier rollouts, where subscriber conversion happens early and often. The numbers instantly position Amazon as one of the largest ad-supported streamers worldwide. By contrast, just 35% of Disney+ subscribers, 26% of Netflix subscribers, and 22% of Max subscribers are on ad-supported tiers. As platforms mature, these hybrid plans provide essential dual revenue streams through both subscriptions and advertisements.
Profitability pivot: Amazon’s forced migration to an ad-supported tier reflects a broader pivot from raw subscriber growth to profitability across the industry. While competitors have struggled to boost ad-tier adoption, Amazon’s automatic switch created an immediate advertising marketplace. Digital-i’s data shows that ad-free users watch more content per day, and live events like Netflix’s Jake Paul vs. Mike Tyson fight demonstrate the potential of exclusive broadcasts to drive new subscriptions.
Engagement black box: Despite the high proportion of ad-supported Prime Video users, there is uncertainty surrounding actual engagement. Many Prime customers receive the streaming service as part of their broader membership, and up to 30% reportedly never watch Prime Video at all. With no public disclosure of total Prime Video subscriber counts or usage metrics, it remains unclear how many ad-supported users actually view ads.
