Amazon Prime Video has announced that starting early next year, it will introduce advertisements during its shows and movies. This move sees Amazon joining the ranks of several other streaming platforms that have adopted multi-tiered subscription models. The change will initially roll out in the US, UK, Germany, and Canada in early 2024, with France, Italy, Spain, Mexico, and Australia to follow later in the year.
Amazon Prime members will have the option to maintain an ad-free experience by paying an additional $2.99 per month in the US. Pricing details for ad-free programming in countries other than the US will be announced at a later date. Amazon has confirmed that there will be no changes to the current price of Prime membership next year.
The decision to include ads comes amidst a competitive environment for streaming services, where platforms are balancing the need for pricing adjustments and content generation to retain customers. Disney+ will also be introducing a new price point of $13.99 per month for its ad-free service in the US starting mid-October, marking a 75% increase over the ad-supported version. Meanwhile, Netflix offers its ad-free plan at $15.49 per month, which is more than double the cost of its ad-inclusive plan.
Amazon’s aim is to utilize the revenue generated from the ads to continue investing in compelling content over the long term. While this is a new development for most of Prime Video’s content, advertisements have already been a feature during live events, such as sports, on the platform.
In anticipation of the changes, Amazon plans to notify US Prime members several weeks in advance of the introduction of ads, providing information on how to opt for the ad-free option should they wish to do so.
Amazon Prime Video is part of the broader Amazon Prime membership, offering a range of perks including free shipping on Amazon.com purchases, access to groceries, online music, and more.
The introduction of ads on Amazon Prime Video follows a recent controversy in June, where Amazon faced accusations from the Federal Trade Commission (FTC) for allegedly enrolling consumers into Amazon Prime without consent and complicating the cancellation process. Amazon denied these allegations, labeling the FTC’s claims as false.