Adverts coming to Amazon Prime Video next year
Amazon is poised to introduce a new dimension to its Prime Video streaming service with the integration of Amazon Prime Video Ads by 2024.
This strategic move is designed to fortify financial support for the creation of compelling original TV shows and films.
In A statement, Amazon said Prime Video still offered “very compelling value”.
It follows similar moves by rivals including Disney+ and Netflix.
Customers in the UK, US, Germany, and Canada can expect to encounter ads in early 2024 unless they opt for a supplementary “ad-free” subscription at an extra cost.
Amazon Prime Video Ads rollout will extend to France, Italy, Spain, Mexico, and Australia later in the same year. The “ad-free” tier will carry an additional cost of $2.99 per month in the US, with prices for other countries to be disclosed at a later date.
Despite expressions of disappointment from customers, a trend mirrored by competitors Disney+ and Netflix, Amazon defends the decision, asserting that it ensures ongoing investments in content.
This move aligns with industry developments, with Disney+ expanding its ad-supported service to the UK, and Netflix introducing a “basic with ads” plan last year.
Amazon believes it can withstand potential cancellations, emphasizing that streaming is just one facet of its Prime package, highlighting its convenience factors over content. The company pledges to maintain “meaningfully fewer ads than linear TV and other streaming providers” and plans to contact Prime members before introducing ads to guide them on opting for the ad-free option. Live event broadcasts, such as sports, will continue to feature ads for those subscribing to the ad-free plan.
While some analysts note the industry’s standardization of ad-supported tiers in streaming, they find Amazon’s move somewhat unusual for a company that positions itself as customer-centric. Despite a 75% price increase in Prime Video since its inception, Amazon believes this decision is unsurprising, aligning with industry practices.
The move comes as the number of paid-for video streaming subscriptions in the UK decreased by two million, from 30.5 million to 28.5 million, according to data from analysts Kantar, attributed to the rising cost of living. Analysts suggest that ad-supported tiers have become standard in the streaming industry, setting the stage for Amazon’s strategic shift.
