Amazon Prime Video to include ads in 2024 with paid ad-free option

WEB DESK: Amazon has announced plans to include advertisements on its Prime Video streaming platform starting early in 2024, while also introducing a pricier ad-free subscription option.

Amazon through its website, revealed its intention to roll out ads initially in the United States, the United Kingdom, Germany, and Canada at the beginning of the year, with further expansion to France, Italy, Spain, Mexico, and Australia later in 2024.

The ad-supported version of Amazon Prime Video will be available at a monthly cost of $14.99, while the ad-free subscription will be priced at $17.98 per month in the United States. Pricing details for the ad-free option in other countries will be disclosed at a later date.

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Amazon emphasised its commitment to providing “meaningfully fewer ads than linear TV and other streaming TV providers.” The introduction of ads is aimed at sustaining investments in content and augmenting those investments over time.

Additionally, Amazon Prime members will receive email notifications detailing how to subscribe to the ad-free option.

Here’s a comparison of the new Amazon ad-free subscription against similar offerings:

Apple TV+: $6.99

Disney+: $13.99 (effective October 12)

Netflix: $15.49

Hulu: $17.99 (effective October 12)

Paramount+: $11.99

Peacock: $11.99

The move is part of Amazon’s strategy to sustain investments in compelling content and expand those investments over an extended period. Prime Video represents a significant financial commitment for Amazon, with an expenditure of $16.6 billion in 2022, including $7 billion allocated to original content.

Earlier in June, the Wall Street Journal reported that Amazon was contemplating the introduction of an ad-supported Prime Video tier, driven by substantial interest from advertisers.

Amazon already has a strong presence in the advertising sector, with its second-quarter earnings revealing a 22 percent year-over-year growth in advertising services revenue, reaching $10.9 billion. According to Insider Intelligence, Amazon ranks third in digital ad revenue, following Google and Meta.