Amazon to Launch Ads on Prime Video in India: A Strategy to Boost Revenue

Amazon (AMZN) will start displaying limited advertisements on its Prime Video platform in India next year. This move is part of the company’s broader plan to increase advertising revenue and fund content investments amid rising competition in the streaming world.

Amazon assures that the number of advertisements viewers will see will be significantly lower compared to traditional TV and other streaming platforms. For those who prefer an uninterrupted viewing experience, Amazon will offer a separate subscription tier, with pricing details to be announced later.

The company has previously introduced an ad-supported version of Prime Video in several nations, including the U.S., U.K., and Germany. In the U.S., Amazon expects to generate $5 billion in advertising revenue this year alone.

Intensifying Competition in India’s Streaming Landscape

This ad introduction comes during a time of increasing competition within the Indian streaming market. The merger between Reliance’s Jio Cinema and Disney (DIS) may present a formidable rival, pushing major streaming services to bolster their offerings.

With the new ad model, Amazon aims to boost investment in content tailored specifically for Indian viewers. Additionally, this strategy is designed to expand its Prime membership base in India, which has seen remarkable growth recently, thanks in part to the platform’s appealing content options.

Examining AMZN’s Stock Potential

On the financial front, analysts on Wall Street currently rate AMZN as a Strong Buy, with 45 Buy ratings and two Hold ratings issued in the last three months. The average price target for Amazon stock stands at $224.38, indicating a 20.06% potential upside. Notably, shares have increased by 23% since the start of the year.

View more AMZN analyst ratings

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