Starting January 29, advertisements will be introduced on Prime Video
In a prior September announcement, Amazon had hinted at the imminent introduction of advertisements to Prime Video’s entertainment content. The anticipated arrival is now confirmed with a set date. The company revealed that ads are set to debut on the Prime Video streaming service, commencing January 29, 2024.
In an email addressed to Prime subscribers, Amazon conveyed that, starting on this date, Prime Video content will incorporate limited advertisements. This strategic move aims to enhance investments in compelling content over an extended period. While Amazon assures viewers of experiencing fewer ads compared to traditional TV and other streaming services, the specific frequency remains undisclosed.
Initially, only Prime Video subscribers in the US, UK, Germany, and Canada will encounter ads during their streaming sessions. However, Amazon’s press release earlier this year suggests a broader rollout, with Spain, Australia, France, Mexico, and Italy expected to join the list later in 2024.
Notably, the ad inclusion will not extend to content rented or purchased through the Prime Video store, preserving the ad-free experience for those transactions. Users with Prime Video Channel subscriptions need not worry about this change affecting their content.
For those averse to interruptions, Amazon introduces an opt-out option at an additional cost of $3 per month. This new Prime Video tier, separate from standard Prime subscriptions, promises an ad-free streaming experience. However, even with the extra $3 monthly payment, ads will persist in Freevee, Amazon’s platform for live sports and other ad-supported content.
While a standard Amazon Prime subscription costs $139 annually or $15 monthly, opting for the ad-free experience raises the expense to $175 per year or $18 per month. Despite the higher price, this subscription remains competitive compared to Netflix’s Premium plan, priced at $23 per month. Additionally, an Amazon Prime subscription offers various benefits, including free one-day delivery, early access to Prime deals, access to Amazon Music, and more.
For those primarily interested in streaming, a standalone Prime Video subscription is available for $9 per month, incorporating ads from January 2024. If the prospect of ads on Prime Video doesn’t align with preferences and usage patterns, canceling a Prime membership might be worth considering.
Amazon’s move reflects a broader industry trend as streaming services explore diverse revenue models, including ad incorporation. This approach aims to balance content production costs while maintaining competitive pricing, offering subscribers a variety of options tailored to their preferences and viewing habits. Over recent years, Amazon has significantly expanded its advertising initiatives within the Prime Video ecosystem, tapping into avenues like live sports, ad-supported platforms such as Freevee and Twitch, contributing to the advertising sector’s robust growth, consistently expanding at a rate exceeding 20% per quarter.
Source: adapted from an article by Maya Robertson, Author of Archives for Mobile Marketing Reads.