Amazon Video Ad Push Seen Generating Extra $5 Billion in Revenue

Amazon.com Inc.’s push into video advertising will boost annual revenue by as much as $5 billion, according to a Bank of America analysis, mostly generated by new television-style commercials on Prime Video.

Ads on Amazon’s streaming service will start appearing in North America on Jan. 29 and internationally on Feb 5. To receive ad-free content, North American subscribers will have to pay an additional $3 per month.

Amazon will sell about $3 billion in video ads this year and generate an additional $1.8 billion from Prime subscribers who pay the extra fee to avoid commercials, BofA analyst Justin Post ...