In a surprising update, Amazon has announced that it will be introducing advertisements on its popular streaming service, Prime Video, starting in early 2024. This move follows in the footsteps of Netflix and Disney+, who introduced ad-supported plans last year. Amazon plans to offer an ad-free tier for an additional $3 per month to its Prime members.
Key Takeaway
Amazon Prime Video will introduce advertisements on its platform in early 2024. Prime members will have the option to upgrade to an ad-free tier for an additional $3 per month. The company aims to show significantly fewer ads than traditional TV and other streaming TV providers. This move follows Amazon’s foray into ad-supported streaming with the launch of FAST and the Fire TV Channels app.
Ads to be Rolled Out in Multiple Countries
The ads on Prime Video will initially be introduced in the United States, United Kingdom, Germany, and Canada in early 2024. Prime Video users in France, Italy, Spain, and Mexico will have to wait a bit longer as the ads will be rolled out in those countries later in the year.
Commitment to Limiting Advertisements
Amazon has promised that the number of ads shown on Prime Video will be significantly fewer than what is typically seen in linear TV programming. The benchmark for linear TV is four minutes of ads per hour, according to Variety. Amazon aims to have a meaningfully lower ad frequency compared to other streaming TV providers.
“To continue investing in compelling content and keep increasing that investment over a long period of time, starting in early 2024, Prime Video shows and movies will include limited advertisements. We aim to have meaningfully fewer ads than linear TV and other streaming TV providers,” the company stated in a recent blog post.
Amazon’s Other Ad-Supported Offerings
Amazon has been exploring the world of ad-supported streaming for some time now. In May, the company launched a new free and ad-supported video experience, known as FAST (Freevee Ad-Supported Streaming TV), for Fire TV devices in the United States. Additionally, Amazon has been bringing its Amazon Original series and movies to the Freevee service. Furthermore, the company introduced the Fire TV Channels app, which provides access to over 400 FAST channels.
Rising Costs and Pricing Adjustments
In recent years, Amazon has raised prices for various services it offers. In February 2022, the annual membership fee for Amazon Prime increased from $119 to $139. This year, the company also raised prices for Amazon Music Unlimited plans for individuals, Prime members, and families. Additionally, last month, Amazon increased the minimum amount for free shipping for non-Prime members to $35 in certain regions.
