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Amazon to Introduce Ads on Prime Video in 2024

Updated: Jan 9

Amazon has announced that it will be rolling out advertisements on its streaming platform, Prime Video, starting in 2024.

Prime Video
Credits: REUTERS

This move comes as the industry faces a slowdown in subscriber growth since the pandemic. In addition to ads, Amazon will also introduce a higher-priced ad-free tier for its users.


The ads will initially be introduced in the United States, the United Kingdom, Germany and Canada, with plans to expand to France, Italy, Spain, Mexico and Australia later in the year. The ad-free tier will cost an additional $2.99 per month in the U.S., on top of the current Prime subscription fee of $14.99 per month or $139 per year. Pricing details for other countries will be shared at a later date.


Amazon's decision to incorporate ads on Prime Video follows similar moves by streaming rivals Netflix and Walt Disney. These companies are hoping that the increase in ad revenue will help offset the decline in subscriber additions.

Despite the introduction of ads, Amazon assures users that it plans to have fewer ads compared to traditional TV and other streaming providers. The company also stated that it will not be raising prices for the current Prime membership plan in 2024.


It is worth noting that Amazon already displays ads on live event content, such as NFL's Thursday Night Football, even for subscribers who have paid for the ad-free plan.


While Amazon does not disclose specific Prime membership numbers, it is estimated that Amazon Prime is the third-largest video-streaming platform in the U.S., with approximately 157.3 million subscribers, trailing behind YouTube and Netflix.


This move by Amazon is expected to generate additional revenue for the company and provide more options for Prime Video users. However, the success of the ad-supported plans remains to be seen, as other streaming platforms have faced challenges in boosting subscriptions for these tiers.

 
  • Amazon will introduce ads on Prime Video in 2024.

  • The ads will be initially launched in the U.S., the UK, Germany and Canada, with plans for expansion to other countries.

  • Amazon will also introduce a higher-priced ad-free tier for Prime Video users.

Source: REUTERS

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