Amazon Prime Video to introduce "limited ads" starting 2024
Amazon is planning to introduce "limited advertisements" in movies and TV shows on its Prime Video streaming platform in early 2024. The move aims to allow the company to continue investing in compelling content. Ads will first be introduced in the US, Germany, UK, and Canada, with Italy, France, Spain, Australia, and Mexico, to follow later that year. The company is yet to reveal the exact date for the introduction of ads on Prime Video.
Ads won't disrupt viewing experience: Amazon
Amazon has confirmed that the ads will be limited and will not disrupt the viewing experience. The platform aims to show 'meaningfully fewer ads' on the streaming platform compared to traditional TV or rivals. The company also stated that it does not plan to change the existing price of its Prime memberships in 2024. Prime subscribers will be notified of the change weeks ahead of the ad injections, along with details on how to sign up for the ad-free option.
Ad-free experience would be available for an additional fee
US-based Prime members will have the option to opt for an ad-free experience for an extra $2.99/month on top of their current subscription, which costs $14.99/month, or $139/year if paid annually. The ad-free plan will be made available to other countries as well, but pricing details will be shared at a "later date." Amazon has not yet disclosed the pricing details for the ad-free option in countries other than the US.
A revenue boost is expected with ad injections
The streaming industry is currently facing a slowdown in new sign-ups as consumers cut back on entertainment and other expenses due to high inflation. Amazon's move comes after rivals such as Netflix and Disney made similar announcements. The company's decision to introduce limited ads is expected to generate additional revenue while maintaining a positive user experience for its subscribers.
