Advertisements on Amazon Prime Video: OTT platform to introduce limited advertisements in 2024

Prepend to the content

  • Amazon Prime Video follows industry trends by adding ads
  • The platform will introduce limited advertisements in 2024 to boost revenue for content production
  • An exclusive ad-free subscription will be available, at a cost, initially to Prime members in the US

Amazon has recently revealed its strategic plan to introduce ‘limited advertisements’ on its immensely popular Amazon Prime Video streaming service in the year 2024. This groundbreaking decision is driven by a desire to generate additional revenue directed towards producing high-quality TV shows and films available on the platform.

Following the Industry Trend

In a bid to cater to the diverse preferences of its user base, Amazon has simultaneously announced the introduction of an exclusive ad-free subscription tier, available at an additional cost of $2.99 per month. This premium offering will be exclusively accessible to Prime members residing in the United States, providing an ad-free viewing experience. This move by Amazon closely aligns with the strategies adopted by industry competitors like Disney+ and Netflix. Disney+ had already signalled its intent to introduce an ad-supported service, while Netflix had ventured into the territory of “basic with ads” streaming plans in the preceding year. Amazon’s decision underscores the evolving landscape of streaming services and the need for innovative revenue streams.

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Impact on Prime Members

Beginning early in the upcoming year, Prime members in key regions, including the United Kingdom, the United States, Germany, and Canada, will encounter advertisements while enjoying their favourite content on Prime Video. However, users who prefer an uninterrupted viewing experience can opt for the “ad-free” subscription tier, ensuring a seamless streaming experience. While the initial rollout will affect the aforementioned regions, Amazon has plans to introduce advertisements on Prime Video for viewers in additional countries, including France, Italy, Spain, Mexico, and Australia, later in the year. Pricing details for these regions will be disclosed in due course, ensuring a consistent approach across global markets.

Fewer Ads, Unchanged Prices

In an official statement, Amazon Prime Video expressed, “To continue investing in compelling content and keep increasing that investment over a long period of time, starting in early 2024, Prime Video shows and movies will include limited advertisements. We aim to have fewer ads than linear TV and other streaming TV providers. Ads in Prime Video content will be introduced in the U.S., U.K., Germany, and Canada in early 2024, followed by France, Italy, Spain, Mexico, and Australia later in the year. No action is required for Prime members. We’re not making changes in 2024 to the current price of Prime membership. We will also offer a new ad-free option for an additional $2.99 per month* for U.S. Prime members and will share pricing for other countries at a later date.”

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