Amazon is extending its Prime Video advertising model to five key international markets in 2025: Brazil, India, Japan, the Netherlands, and New Zealand. This move, announced during Amazon Ads’ “Unboxed” event in Austin, TX, underscores the company’s strategy to broaden its global footprint in the ad-supported streaming space.
The global expansion follows Amazon’s initial rollout of ads on Prime Video in 2024 across major markets, including the U.S., U.K., Canada, and France. Subscribers in these regions have been offered the option to pay an additional $3 per month to opt out of ads, a feature expected to remain in the newly added countries.
Growing U.S. Ad Load Amid International Expansion
While this announcement highlights Amazon’s international ambitions, it’s worth noting that the company plans to increase the volume of ads shown on Prime Video in the U.S. in 2025. Executives have indicated that, following a successful introduction of ads earlier this year, they expect to expand the ad load slightly, likely driven by strong advertiser demand.
This move aligns with Amazon’s growing influence in the streaming ad market, where the company has rapidly secured a dominant position. Amazon’s first foray into upfront ad commitments saw the platform exceed its $1.8 billion target, fueled by premium content like Fallout and Reacher, alongside exclusive live sports rights like NFL Thursday Night Football.
Prime Video’s Standalone Profitability Potential
At Bloomberg’s Screentime event, Mike Hopkins, Head of Prime Video, hinted at another potential shift in Amazon’s strategy: the profitability of Prime Video as a standalone service. Hopkins mentioned that Prime Video could be a revenue generator on its own, thanks partly to ad-supported content and exclusive sports rights, including a massive 11-year NBA deal starting in 2025. This statement signals that Amazon is positioning Prime Video not only as a complementary feature of its Prime membership but also as a potentially lucrative platform in its own right.
Expanding Reach, Maximizing Engagement
With the addition of these five new markets in 2025, Prime Video’s ad-supported model will be available in over 15 countries, enhancing its global reach. According to Alan Moss, Amazon’s VP of Global Ad Sales, this strategy aims to deliver value to brands and advertisers by offering premium content, live sports, and first-party data to connect with audiences at scale. “We’re excited to offer more brands, in more countries, the opportunity to engage with Prime Video audiences,” Moss said, highlighting the value Amazon provides through its diverse media offerings, which include Twitch, Freevee, and Fire TV Channels.
As programming costs rise and streaming platforms seek to offset expenses, Amazon’s aggressive expansion into the ad market positions the company as a leader alongside rivals like Netflix and Disney+. Amazon’s unique global reach, premium content, and extensive advertiser tools set it apart in an increasingly competitive field.
The Long Game
Amazon’s decision to expand Prime Video ads to new international markets while simultaneously increasing the ad load in the U.S. reflects the company’s ambitious strategy to dominate the ad-supported streaming space. With growing advertiser interest, exclusive sports deals, and the potential profitability of Prime Video as a standalone service, Amazon is well-positioned to leverage its vast global ecosystem for continued growth in the streaming industry.
