Amazon exceeded analyst expectations, generating $11.82 billion in ad revenue for the first quarter of 2024. This success was driven by the company’s decision to incorporate advertising into Prime Video as a default option in multiple markets.
The advertising sales for the quarter reached a new Q1 record, increasing by 24% year over year. This surpassed analyst predictions of $11.7 billion, according to StreetAccount.
CEO Andy Jassy attributed this strong performance to the growth of Amazon’s Stores and Prime Video businesses. He highlighted the success of Prime Video, which now boasts more than 200 million monthly viewers and began featuring advertising on Jan. 29. In the United States, Prime Video has an estimated 115 million monthly viewers. Prime Video ads are now available in the U.S., the U.K., Germany, Austria, Canada, France, Italy, Spain, and Mexico.
Jassy emphasized the rapid growth of streaming TV advertising, noting Prime Video’s exclusive content such as NFL “Thursday Night Football” games, the “Lord of the Rings” series, “Reacher,” “The Boys,” “Citadel,” and “Road House.” Amazon recently announced that Prime Video will stream its first NFL Wild Card playoff game in January 2025.
However, Amazon faced backlash in February when a lawsuit was filed on behalf of Prime Video users. The lawsuit accused Amazon of false advertising and deceptive practices for introducing ads into Prime Video unless customers pay an additional $2.99 per month. Amazon has chosen not to comment on the lawsuit.
Despite this controversy, Amazon exceeded overall Q1 expectations. The company reported revenue of $143.3 billion, up 13% from the previous year, and net income of $10.4 billion, or 98 cents per share. Wall Street analysts had predicted revenue of $142.5 billion and earnings per share of 83 cents, according to financial data provider LSEG.
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