Amazon.Com Inc (NASDAQ:AMZN) is targeting more ads in its TV shows and movies on Prime Video by 2025, following Netflix Inc (NASDAQ:NFLX) and Walt Disney Co (NYSE:DIS) Disney+, the Financial Times quotes Prime Video International’s Kelly Day.

Day told FT that Amazon, like its rivals, had ramped up spending on Prime content, including more on rights to live sports.

Streaming rivals Netflix, Warner Bros. Discovery, Inc (NASDAQ:WBD) Maximum, Big global (NASDAQ:PARA) Paramount+ and the cheaper, ad-supported tier of Disney+ are testaments to the popularity Amazon is now looking to launch.

Also read: Netflix, Disney+ and Amazon hit by Philippine new 12% tax on digital providers

In January, Citi estimated more than $5 billion in “high-margin advertising revenue” from Prime Video.

According to FT, Amazon’s digital ad revenue rose 20% to $12.8 billion in the second quarter of 2024.

Day told the FT that Amazon proposes to appeal to advertisers by showcasing its potential to reach around 19 million British viewers every month, representing a third of the population.

Amazon’s ad-supported Prime Video tier had a global ad reach of 200 million, with more than 50% in the US also eyeing interactive and shoppable ad formats for Prime Video.

Netflix shares are up 89% in the past twelve months. KeyBanc analyst Justin Patterson projected the upside of his content offering, including National Football League games, “Squid Game” and an upcoming price hike.

According to Statista, Amazon Prime Video and Netflix’s subscription video on demand (SVOD) services had a market share of 22% each in the US in the second quarter of 2024. Netflix had 247.2 million subscribers compared to Amazon Prime Video’s 200 million. and Disney+ had 150.2 million, according to a Forbes report.

Walt Disney shares are up more than 18%. The company’s 2024 blockbusters, including “Inside Out 2” and “Deadpool & Wolverine,” could boost the streaming service.

Amazon shares have grown more than 48% in the past twelve months thanks to their e-commerce and cloud businesses.

Price promotion: AMZN shares are down 0.25% to $184.30 premarket at last check Thursday.

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This article Amazon Prime Video Ramps Up Ads, Takes on Netflix and Disney+ in Streaming Battle originally appeared on Benzinga.com

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