By 2024, Amazon Prime is set to make $2 billion in ad revenue

Amazon's Prime Video service, launched this week, is predicted to generate over $2 billion in additional ad income by 2024, according to Omdia's exclusive research.

Amazon's ad-supported Prime Video service launched this week. According to new, exclusive research from Omdia, the streaming service is expected to bring in more than $2 billion in additional ad income by 2024, the year it launches. This will be on top of the money previously received via the service's sale of advertising time during live sporting events.

With over 200 million subscribers, Amazon Prime has amassed a sizable following because of the variety of services it provides, such as free delivery, a huge selection of products, music, and cloud services. Amazon is able to maintain its competitiveness and consumer base thanks to these services.

The primary distinction between Netflix and Amazon Prime's advertising strategies is that the latter's is based on a subscription model. All current users of Amazon will be placed in the ad-supported tier of the service, with the opportunity to upgrade to see content without advertisements for a fee. All Netflix subscribers start out in the non-ad-supported tier, and they can choose to pay less for an ad-supported service.

Speaking about Amazon Prime's foray into the ad-supported video space, Matthew Bailey, Principal Analyst at Omdia, stated that the estimated global revenue of over $2 billion for the ad-supported Prime Video tier in 2024 is indicative of Amazon's efforts to diversify its revenue streams beyond membership fees. This suggests that the streaming platform has a significant amount of expansion potential.