Amazon’s Prime Video service will start featuring limited ads in early 2024, with the ad tier becoming the default option for Prime Video. The price of a regular Prime subscription will not increase, but users who want to watch Prime Video without commercials will have to pay an extra $2.99 per month. This move follows other ad-free streaming services like Netflix, Disney+, and Warner Bros. Discovery’s Max in seeking additional revenue streams through advertising. Amazon says the inclusion of ads will help the streamer continue investing in programming, including original series and live sports.
Amazon’s Prime Video Will Have Ads Starting in 2024
Amazon announced that its Prime Video service will feature limited ads beginning in early 2024. The ad tier will become the default option, and users who want ad-free viewing will have to pay an extra $2.99 per month. This move follows other streaming services in seeking additional revenue streams through advertising. Amazon states that the inclusion of ads will help the streamer continue investing in programming and live sports like the NFL’s Thursday Night Football franchise.
Implications and User Experience
While some may be disappointed by the introduction of ads on Prime Video, Amazon promises “meaningfully fewer” commercials than traditional TV. The dual revenue streams from ads and subscriptions can actually make the service more lucrative, allowing consumers to choose lower-cost video tiers. Amazon will alert users ahead of the introduction of ads and provide instructions on how to sign up for ad-free viewing. Ads on Prime Video will roll out in several countries, including the United States, United Kingdom, Germany, and Canada.
Continued Investment in Programming
Amazon emphasizes that the inclusion of ads on Prime Video will help the streamer continue investing in programming, including original series and live sports. The company’s rights to the NFL’s Thursday Night Football franchise cost $1 billion annually. By introducing ads, Amazon can generate additional revenue to support its content offerings and maintain a competitive edge in the streaming market.