A Prime Video Ad Tier Could Be a Cash Cow for Amazon – but It’s Not Without Risks | Analysis

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Slipping commercials into its streaming service could add $4.8 billion a year in revenue, Morgan Stanley estimates – but existing subscribers might resist a change

Analysts with Morgan Stanley estimate a potential AVOD offering from the tech giant could generate $4.8 billion in annual revenue by 2025 (Getty Images)

“Unlimited, commercial-free, instant streaming” of thousands of movies and TV shows for anyone signed up for Amazon’s $79-a-year free shipping program. That was a key promise when the online retail giant introduced Prime Video in 2011.

A lot has changed in a dozen years. The price of Prime has nearly doubled to $139 a year, and consumers are flocking to cheaper, ad-supported video subscriptions. And Amazon has become a big player in online advertising. Now the company is reportedly mulling a cheaper version of Prime Video with ads — and it could pay off for Amazon in multiple ways, experts told TheWrap.