A new study from S&P Global Market Intelligence Kagan is forecasting rapid advertising growth for Amazon’s streaming efforts.

It is projecting that by the end of 2025, Amazon will have about 128 million Prime subscribers, up from 99.6 million in 2020, and that nearly 75% of those access Prime Video content. That translates to about 90.5 million Prime Video users, of which only 5.48 million are on the ad-free tier.

That is powering rapid growth in Amazon’s ad streaming revenue. Since Amazon introduced ads on Prime Video in January 2024, its advertising revenue hit $433 million in 2024 and is forecast to grow to $806 million in 2025, according to the research. This growth is attributed to the ad-supported version reaching over 130 million U.S. consumers monthly, the researchers said.

Other key highlights include:

Subscriber Growth: Paid US Amazon Prime subscribers are projected to exceed 128 million by the end of 2025. The pandemic initially drove subscriber growth, but this has slowed since 2023. Prime Video viewing accounts are expected to reach over 90 million by 2025, with a significant portion viewing content with ads.

Ad Revenue Surge: Amazon introduced ads on Prime Video in January 2024, with ad revenue expected to rise from $433 million in 2024 to $806 million in 2025. This growth is attributed to the ad-supported version reaching over 130 million US consumers monthly.

Consumer Preferences: Survey data indicates that free shipping and Prime Video access are top perks for Prime subscribers, used by over 70% of respondents. Other popular features include Amazon Music, Prime Reading, and Prime Gaming.

Revenue and Costs: US Prime Video revenue is estimated to reach $5.64 billion in 2025, with ad revenue contributing significantly to this increase. Global programming costs for Prime Video are projected to rise to $10.56 billion in 2025, reflecting Amazon's investment in expanding live sports programming.

Demographics: Prime Video viewers tend to be younger, living in homes with children, and from higher income brackets. This demographic trend is consistent with broader Amazon shopper profiles, where Prime subscribers are slightly younger and more likely to have children.