TECH - Amazon Gambles with Ads on Prime Video: A Smart Move for Revenue Or Risk to Subscriber Loyalty? | Benzinga
Amazon.Com Inc (NASDAQ:AMZN) charging Prime members for ad-free streaming has led to dissatisfaction among some customers, who canceled their Prime subscription after learning Prime Video would include commercials.
Despite this, Amazon expects the number of Prime members to continue growing, with high renewal rates, the Wall Street Journal reports.
Analysts noted $6.6 billion – $8.0 billion of incremental revenue on the worldwide launch of the plan.
In the third quarter, Amazon’s $12 billion ad revenue marked a 26% jump from the previous year.