Amazon Prime Video Hits 130 Million Ad-Supported Users, Unveils New Ad Tech

Jacob Heinz

15 May 2025 — 2 min read

Amazon Prime Video has announced that its ad-supported streaming service has surpassed 130 million active users in the U.S., marking a significant increase from 115 million reported last year. This growth comes as the company prepares to showcase new advertising technologies aimed at enhancing viewer engagement and driving sales.

Key Takeaways

User Growth: Prime Video's ad-supported tier now reaches over 130 million U.S. customers, a 13% increase from the previous year.
Ad Revenue Surge: The introduction of ads has significantly boosted Amazon's advertising revenue, which exceeded $17 billion in Q4 of last year.
AI-Powered Ads: New AI tools will create contextual, shoppable ads that align with the content viewers are watching.
Shopping Integration: 88% of Prime Video viewers also shop on Amazon, highlighting the platform's dual role as a content provider and e-commerce giant.

Overview of Prime Video's Ad Tier

Launched nearly two years ago, the ad-supported version of Prime Video has become a key player in the streaming market. Users can opt for an ad-free experience by paying an additional fee of $2.99 per month. The service is included with an Amazon Prime membership, which costs $14.99 per month or $139 annually, providing additional benefits like free shipping and access to other Amazon services.

Expansion Plans

Amazon is not only focusing on its U.S. audience but also plans to expand the ad-supported tier to international markets, including Brazil, India, Japan, the Netherlands, and New Zealand in 2025. This move is part of Amazon's strategy to enhance its global footprint in the streaming industry.

Innovative Advertising Solutions

During its recent Upfront presentation, Amazon unveiled several new advertising technologies:

Contextual Ads: These ads will dynamically align with the content being viewed, creating a seamless viewing experience.
Shoppable Ads: Viewers can purchase products directly from ads without leaving the content stream, complete with real-time pricing and availability.
Interactive Formats: New ad formats will include calls to action like "subscribe now" or "book an appointment," allowing for immediate viewer engagement.

The Impact of Advertising on Streaming

The shift to an ad-supported model has not only increased Amazon's user base but has also transformed the advertising landscape. With the influx of new ad inventory, competitors in the streaming space are feeling the pressure to adapt. Amazon's unique position, combining content and commerce, allows it to offer advertisers a compelling platform to reach consumers effectively.

Conclusion

Amazon Prime Video's growth to 130 million ad-supported users underscores the platform's success in integrating advertising with streaming content. As the company rolls out innovative ad technologies, it is poised to redefine how viewers interact with advertisements, making them a natural part of the viewing experience rather than interruptions. This strategic move not only enhances user engagement but also solidifies Amazon's position as a leader in the streaming and advertising markets.