Amazon Prime Video has announced that it will include Ads in its content beginning next year.
Amazon intends to introduce advertisements into its Prime Video streaming service in 2024. This shift is driven by Amazon’s goal to invest more in creating TV shows and films.
Starting early next year, customers in the UK, the US, Germany, and Canada will encounter Amazon prime video ads, unless they choose to pay for an “ad-free” subscription option.
Amazon defended this move, stating that Prime Video still offers “very compelling value.” This decision follows similar actions taken by rivals like Disney+ and Netflix.
Amazon plans to extend ads to France, Italy, Spain, Mexico, and Australia later in 2024. In the United States, Prime subscribers can access an “ad-free” subscription tier for an additional $2.99 per month.
Pricing details for other countries will be disclosed later by Amazon. Currently, a Prime subscription in the UK costs £8.99 per month or £95 per year, covering free one-day product delivery and streaming access.
Amazon clarified that, starting in 2024, Prime Video content will include limited advertisements in the UK to support investments in engaging content.
However, some customers have expressed dissatisfaction with this trend, echoing sentiments observed with other streaming platforms. Disney+ expanded its ad-supported service in the UK in August, while Netflix introduced a “basic with ads” streaming plan last year, marking a departure from its traditional ad-free subscription model.
Hanna Kahlert, an analyst at Midia Research, noted that many people resist ads on services they’ve already paid for, though some may accept it for a cheaper subscription. Kahlert emphasized that Amazon, with its comprehensive Prime package, can make this change without significant subscription cancellations.
Amazon intends to maintain a lower volume of ads compared to conventional TV and other streaming providers. The company plans to notify Prime members about the ad-free option a few weeks before ad integration begins. Notably, live event broadcasts, such as sports matches, will continue to include ads, even for ad-free subscribers.
Kantar’s data revealed that people scaled back their video streaming subscriptions last year due to rising living costs. In the UK, paid video streaming subscriptions dropped from 30.5 million to 28.5 million. Although there was a brief surge in demand around Christmas, Kantar noted that people quickly sought ways to economize again.
Max Willens, senior analyst at Insider Intelligence, noted ad-supported tiers are now common in streaming, influencing Amazon’s decision. He noted Amazon, portraying itself as customer-centric, follows industry trends, implementing changes despite service cost increases.