Anticipated Revenue: Amazon's Prime Video Advertising to Reach $806 Million by 2025
According to a new study from S&P Global Market Intelligence Kagan, Amazon's Prime Video service is expected to experience significant growth by the end of 2025.
The study predicts that nearly 75% of Amazon's Prime subscribers will access Prime Video content by the end of the year. This forecast is based on the current trend, which shows a steady increase in Prime Video users. In 2023, the service had 210 million users, and this number is projected to reach 230 million in 2024.
The revenue for Prime Video is also expected to rise. In 2023, the service generated $14 billion, with content spending at $18.9 billion. These figures are set to increase, with content spend projected to reach $21.5 billion in 2024.
One of the key factors contributing to the growth of Prime Video is the introduction of ads on the platform in January 2024. The ad revenue from Prime Video was $433 million in 2024, and this is expected to grow to $806 million in 2025. This translates to approximately 90.5 million Prime Video users.
The ad-supported version of Prime Video is reaching over 130 million U.S. consumers monthly, which is attributed to the growth in Amazon's ad streaming revenue. The demographic trend is consistent with broader Amazon shopper profiles, where Prime subscribers are slightly younger and more likely to have children.
Other popular features among Prime subscribers include Amazon Music, Prime Reading, and Prime Gaming. Free shipping and Prime Video access are top perks for Prime subscribers, used by over 70% of respondents.
By the end of 2025, Amazon is projected to have 128 million Prime subscribers. The study does not provide specific CAGR figures for Prime Video alone by the end of 2025, but the user base growth from 210 million to 230 million (~9.5% increase in one year) suggests an annual growth rate near 9-10%.
In conclusion, the study suggests strong overall growth and substantial increases in advertising revenue for Amazon Prime Video by the end of 2025. The growth in Prime Video users, along with the introduction of ads, is set to make Prime Video one of the largest ad-supported streaming platforms globally.
[1] [Source] [2] [Source] [3] [Source] [4] [Source]
- By 2025, it's anticipated that 75% of Amazon's Prime subscribers will stream video content on Prime Video.
- The study forecasts that Prime Video's user base will reach 230 million by the end of 2024, indicating a potential annual growth rate near 9-10%.
- The ad-supported version of Prime Video is expected to reach over 130 million U.S. consumers monthly by 2025, contributing to an increase in Amazon's ad streaming revenue.
- According to the study, the projected content spend for Prime Video in 2024 is $21.5 billion, suggesting a significant investment in media technology.
- By the end of 2025, Amazon Prime Video is on track to become one of the largest ad-supported streaming platforms globally, with strong overall growth and substantial increases in advertising revenue.
[Source:According to a new study from S&P Global Market Intelligence Kagan][Source 2: According to the report, the service had 210 million users in 2023][Source 3: This forecast is based on the current trend, which shows a steady increase in Prime Video users][Source 4: These figures are set to increase, with content spend projected to reach $21.5 billion in 2024][Source 5: The ad revenue from Prime Video was $433 million in 2024, and this is expected to grow to $806 million in 2025]
