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From June 17, Amazon Prime Video subscribers in India will begin seeing advertisements during their streaming experience, unless they opt in to a new Rs 129-per-month or Rs 699-per-year ad-free plan. This shift marks a significant update to Amazon’s India offering, aligning it with global trends and opening up a fresh stream of advertising inventory.
But while the move aims to balance consumer value with revenue opportunity, it also introduces a new layer of complexity in a highly competitive and price-sensitive streaming market.
For Rahul Vengalil, Co-founder and CEO of tgthr, the shift was only a matter of time. “For Rs 1499, I got next-day shipping, now single-day shipping, content for consumption, Amazon Music, and eBooks. That deal was brilliant,” he says. “You can’t have free lunches all the time. It was bound to happen.”
He believes the change will be met with mixed reactions, depending on the segment. “We have two kinds of consumers right now. One is a set of consumers who are okay to pay a premium for an ad-free experience—like those on YouTube Premium or Spotify Premium. They will definitely pay for it and go into the ad-free mode,” he says. “A larger chunk of consumers are okay with having ads being served, because they are value-conscious. They also understand that the Amazon bundle comes with a lot of value.”
Amazon Prime Video remains one of the top OTT platforms in India, competing primarily with Netflix and JioStar. Industry estimates place Prime Video’s Indian subscriber base at over 25 million paid users as of 2025, bolstered by its integration with Amazon’s broader Prime membership. Its programming mix—from global franchises to Indian originals like Mirzapur, The Family Man, and Panchayat—continues to appeal to both metro and tier-2 viewers.
Vengalil adds that the decision is also a response to a maturing e-commerce landscape. “E-commerce hasn’t been growing like it did five years ago. The market is maturing and getting fragmented,” he says. “This is a new revenue delta—either Rs 699 from users, or ad revenue from brands.”
He also highlights Amazon’s unique advantage in linking content with commerce. “Amazon gives you a holistic view—shopping behaviour plus content consumption. If a fashion brand wants to advertise, they get both transactional data and context. That’s a powerful combo.”
Lloyd Mathias, business strategist and independent director, calls it a hybrid strategy that’s increasingly becoming the norm in the industry. “This allows Amazon to tap into ad revenues while giving users a choice to opt out,” he says. “Users now expect some level of control. This model respects that by letting them choose what experience they want.”
Gopa Menon, Chief Growth Officer at Successive Digital, describes the move as an interesting approach for the Indian market. “While Indian viewers are used to ad-supported content, Prime subscribers will likely feel shortchanged—they signed up for an ad-free experience, after all.” At the same time, he recognises the balancing act Amazon is attempting. “Indian consumers are particularly price-sensitive, and Amazon’s strategy appears to balance revenue generation with market realities.”
He points to wider patterns in the subscription economy. “The ad-supported tier allows Amazon to maintain competitive pricing while creating a new revenue stream in a market where subscription fatigue is becoming evident,” Menon says.
Mathias emphasises that Indian audiences are largely accustomed to ad-supported viewing, stating, “Most Indian consumers are used to surfing OTT stations where there is a sizable amount of ads… I don’t think it’s going to be a big issue.” While he acknowledges that a small segment of users may opt for the premium, ad-free version, he believes the bulk of users will accept the ad-supported tier.
“There’ll be a small section of people who prefer the premium version,” he says, “but I think the bulk of consumers will go with it.”
“The ultimate impact will depend on how Amazon balances ad frequency, implements skip options, and whether the value proposition—content quality versus disruption—remains favourable to Indian consumers who have increasingly diverse streaming options,” says Menon.
Shweta Kaushal, Founder Director at creatorcult, focuses on consumer expectations. “Indian audiences are increasingly discerning. They’re willing to pay for content, but with clear expectations—key among them being an ad-free experience,” she says. “Introducing ads without offering a more affordable tier or added value could feel like a breach of that implicit contract.”
Globally, Amazon has more than 220 million Prime members, with over 190 million streaming Prime Video content, according to company filings. India remains a key market.
Still, Kaushal believes the shift opens up opportunities for brands. “India has always been an ad-friendly market, provided the advertising is contextual, non-intrusive, and ideally even entertaining,” she says. “For brands, this opens up a new premium inventory opportunity—especially if Amazon leverages its rich data to enable smarter targeting.” But she adds a note of caution. “The onus will be on execution. If handled clumsily, it could drive audiences to leaner, cleaner alternatives.”
Prasun Kumar, Chief Marketing Officer at Magicbricks, sees the move as a natural step forward. “This is the next logical step in Prime monetisation. For long Amazon has delivered immense value with Prime subscription. With ads, they will be able to not only open a new channel—and potentially a big one—of monetisation but have also premiumised the ad-free content pricing.”
With the launch of its ad-supported tier in June 2025, Prime Video is moving toward a dual-revenue model. This positions it strongly in India’s booming digital video ad ecosystem, projected to exceed Rs 8,000 crore this year, according to GroupM. With its extensive commerce and data infrastructure, Prime Video offers advertisers a uniquely integrated platform for high-impact campaigns.
Kumar adds that the outcome will depend in part on how consumers weigh Prime Video within the broader Prime bundle. “Given that Prime subscriptions were not merely taken for content but for other more lucrative propositions like free home delivery etc., it will be interesting to see the off-take of the Rs 699 add-on plan.”
Shradha Agarwal, Co-founder and CEO of Grapes Worldwide, says the move may have startled some users, but believes it is unlikely to have long-term negative effects. “The announcement by Amazon to run ads on the content comes as a surprise for many consumers. It has been introduced with the purpose of promoting high-quality programming aimed at curating compelling content,” she says.
“Dwelling on innovative ads or campaigns, it can drive consumer engagement at a deeper level. After the initial phase of surprise subsides, I believe it will not have a lasting impact on viewers, as they will continue to subscribe and share the account with others for the range of content available on the platform,” adds Agarwal.
As Amazon refines its monetisation model in India, the question is no longer whether ads belong on premium platforms—but how well they can be integrated without compromising the user experience. For now, the success of the new Prime Video strategy will hinge not just on pricing, but on execution.
“It’s a win-win—if they get the execution right,” says Vengalil.
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