Taking a page from the playbook of streaming giants such as Netflix and Disney+, Amazon has disclosed its intentions to incorporate advertising into its Prime Video platform in early 2024. This advertising rollout will commence in the United States, United Kingdom, Germany, and Canada, with users in France, Italy, Spain, and Mexico experiencing ads at a later date.
To maintain an ad-free experience, Prime members can opt for an additional $3 per month ad-free tier. Amazon is committed to limiting the frequency of ads, targeting fewer ads than traditional linear programming, which typically features four minutes of advertisements per hour, according to Variety.
Amazon expressed its intention to use ad revenue to invest in high-quality content continually. Starting in early 2024, Prime Video’s shows and movies will incorporate limited advertisements, with Amazon striving to offer significantly fewer ads compared to linear TV and other streaming providers.
This move follows Amazon’s previous forays into ad-supported content, such as the launch of a free and ad-supported video experience (FAST) for Fire TV devices in the U.S. in May. The company also expanded its Freevee ad-supported streaming service with more than 100 Amazon Original series and movies.
In August, Amazon introduced a Fire TV Channels app, providing access to over 400 FAST channels. The decision to introduce ads on Prime Video aligns with the evolving landscape of streaming services, as platforms explore various revenue streams to sustain their content offerings.
Amazon’s move comes amidst price adjustments for its services in recent years, including an increase in the Prime annual membership fee from $119 to $139 in February 2022. Additionally, the company raised minimum free shipping thresholds for non-Prime members to $35 in certain regions last month.
As Amazon prepares to usher in ads on Prime Video, it aims to strike a balance between generating ad revenue and delivering a compelling, ad-free viewing experience for its subscribers.
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