Amazon has announced that it will introduce ads to its Prime Video streaming service in 2024, unless customers opt for a new ad-free tier that will cost extra. The company said the move is necessary to continue investing in compelling content and keep increasing that investment over a long period of time.
The ads will be limited and will have meaningfully fewer ads than linear TV and other streaming TV providers, according to a mail shared by Amazon with its subscribers. The ad-supported Prime Video will be the default option for Prime members, who will not see any changes in the current price of their membership in 2024. However, those who want to watch Prime Video without ads will have to pay $3 per month in the US to upgrade to the ad-free tier.
The ads rollout in Prime Video will begin with customers in the US, the UK, Canada and Germany on January 29, 2024. It will be followed by France, Italy, Spain, Mexico, and Australia later in 2024. No information has been shared regarding the price hike of plans or the introduction of ads in the existing plans in the Indian region. Amazon also noted that live events, such as sports, will continue to include commercials even if customers have upgraded to the ad-free tier, as these are part of the broadcast rights agreements.
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The change was first announced by Amazon earlier this September. Amazon is not the first streaming service to offer an ad-supported tier, as Netflix and Disney Plus both introduced similar plans last year, joining most other major streaming services which offer an ad-supported plan, such as Max and Hulu.
The streaming market has become increasingly competitive and saturated, with customers having more choices and budgets than ever before. With Prime Video hopping onto the bandwagon of ad-supported plans, it is evident that the company is now in search of more profits.