Amazon has announced that it will start including ads on its Prime Video streaming service starting January 29, a move that is expected to generate additional revenue for the e-commerce giant. The company had previously revealed plans to introduce ads to its video streaming service in “early 2024,” but the exact date was not specified until recently.
The ads will initially be introduced for viewers in the U.S., U.K., Germany, and Canada, and will later be rolled out to France, Italy, Spain, Mexico, and Australia. Prime subscribers will be able to continue enjoying ad-free viewing for a $2.99 per month surcharge in the U.S., although the price may vary in other countries.
Amazon’s decision to introduce ads on its Prime Video service follows similar moves by its streaming rivals, including Netflix, Disney+, Hulu, and Peacock. Netflix, for example, introduced an ad tier in November last year for $7 per month, which has already reached 15 million global monthly active users.
In a statement, Amazon said that it plans to show “meaningfully fewer ads than linear TV and other streaming TV providers” when the ad-based service launches next month. The company is also promising that the ads will not disrupt the viewing experience, stating that the ads will be targeted to individual users and will be shorter in length.
Amazon Prime Video
The introduction of ads on Prime Video is likely to generate additional revenue for Amazon, which has invested heavily in original content and has been expanding its presence in the streaming market. The company has promised that the ads will allow it to “continue investing in compelling content, and keep increasing that investment over a long period of time.”
For Prime subscribers who do not want to watch ads, the $2.99 per month surcharge will provide an ad-free viewing experience. However, for those who are willing to watch ads, the ad-based service could provide a more affordable option. The price of Prime membership will remain the same for now, but the introduction of ads could potentially increase revenue for the company.
Amazon’s decision to introduce ads on its Prime Video service is likely to have a significant impact on the streaming market, particularly in a competitive space where companies are constantly looking for ways to generate additional revenue. As more companies introduce ads to their streaming services, consumers may be forced to choose between premium ad-free viewing and more affordable ad-based options.
The introduction of ads on Amazon’s Prime Video service is a significant development in the streaming market, and it remains to be seen how consumers will respond to the change. As more information becomes available, it will be interesting to see how Amazon’s ad-based service stacks up against its competitors and whether it will ultimately benefit the company’s bottom line.
