Prime Video Advertising ‘Off to a Strong Start’ and ‘Growing Quickly,’ CEO Andy Jassy Says

The streamer launched its ad tier in January, where brands can reach over 200 million monthly viewers

Prime Video logo
Prime Video logo (Photo Credit: Amazon)

Prime Video’s advertising efforts are off to a “strong start” and “growing quickly” following the offering’s official launch in January, according to Amazon CEO Andy Jassy.

“Recently, we’ve expanded our streaming TV advertising by introducing ads into Prime Video shows and movies, where brands can reach over 200 million monthly viewers in our most popular entertainment offerings, across hit movies and shows, award-winning Amazon MGM Originals, and live sports like Thursday Night Football,” Jassy wrote in the tech giant’s annual shareholder letter.

Prime Video’s ad-supported tier is the default for all subscribers. Those who want an ad-free experience being charged an additional $2.99 per month. Currently, Amazon Prime, which includes Prime Video, costs $14.99 per month or $139 a year. A membership that only includes Prime Video and none of the company’s shipping benefits costs $8.99 a month.

In 2023, Amazon’s advertising grew 24% year over year to $47 billion, primarily driven by sponsored ads.

“We’ve added Sponsored TV to this offering, a self-service solution for brands to create campaigns that can appear on up to 30+ streaming TV services, including Amazon Freevee and Twitch, and have no minimum spend,” Jassy added.

In addition to the annual letter, Amazon released its proxy statement for 2023, which found that Jassy earned $1.36 million in total compensation, up from $1.3 million in 2022.

The package included a $365,000 base salary and $992,764 in “other” compensation, which included the value of cash and/or shares of common stock contributed to his 401(k) plan, security services and business travel.

Meanwhile, founder Jeff Bezos’ pay remained unchanged at $1.68 million, including a base salary of $81,840 and $1.6 million in other compensation, including security services and business travel.

Amazon will hold its annual meeting of shareholders on May 22.

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