Amazon Prime Video is making a significant change to its streaming platform by introducing limited advertising on its TV programs and films. This move is part of the company’s effort to continue investing in compelling content and increasing its investment over a long period. The advertisements will be “meaningfully fewer” than those found on linear TV and other streaming TV providers. Viewers will have the option to pay for an ad-free subscription, with the cost to be announced at a later date. In the US, the ad-free option will cost an additional $2.99 per month for Prime subscribers.
The change is part of Amazon’s strategy to diversify its revenue streams and increase its competitiveness in the crowded streaming market. The move is also aimed at providing more choices for its customers and its advertising partners. Amazon believes that its Prime service is a “very compelling value” due to the shopping, savings, and entertainment benefits that come with it. The company will send out an email to subscribers several weeks before the adverts are introduced, providing them with information on how to sign up for the ad-free option.
The introduction of advertising on Amazon Prime Video follows similar moves by its rivals, including Netflix and Disney+. Netflix began testing ads on its platform earlier this year, while Disney+ announced plans to introduce an “ad-supported” subscription plan in Ireland and the UK. The addition of advertising is expected to generate significant revenue for Amazon, which has been focusing on growing its streaming business.
Prime Video
The advertisements will be rolled out in several countries, including Ireland, the UK, US, Germany, and Canada, in early 2024. The rollout will also include France, Italy, Spain, Mexico, and Australia later in the year. Amazon has confirmed that the price of its Prime service will not change in 2024. However, customers who choose to opt-out of the ad-free option will still have access to the same content and features.
It remains to be seen how customers will respond to the introduction of advertising on Amazon Prime Video. However, the company’s emphasis on providing a “meaningfully fewer” number of ads than those found on linear TV and other streaming TV providers may help to alleviate concerns. Additionally, the option to pay for an ad-free subscription will give customers greater control over their viewing experience. The introduction of advertising on Amazon Prime Video is a significant move that will help the company to continue investing in compelling content and increasing its competitiveness in the streaming market.
