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Prime Video with ads will launch with $30 CPMs, undercutting rivals

Amazon Prime Video With Ads Will Launch at the End of January with CPMs in the Low- to Mid-$30 Range

The $30 price point is highly competitive and far lower than the $50 or even $60 CPMs that rivals like Netflix and Disney+ burst onto the scene with in late 2022, showing that competition is causing streaming advertising costs to fall.

For Amazon, $30 CPMs is about more than just undercutting the competition. Its ad-supported subscription model gives it a significant leg up against other streaming services, and the lower price point will entice a large number of new advertisers to its platform.

Amazon’s competitive pricing, high-profile content, and large out-of-the-box audience could drive peers to lower their prices, leading to a much more accessible streaming advertising market.