Amazon to Introduce Limited Advertising on Prime Video in 2024
Amazon has announced plans to introduce “limited” advertising on its Prime Video platform, starting early next year. The initial rollout will be in the U.S., U.K., Germany, and Canada, with France, Italy, Spain, Mexico, and Australia following later in the year. The company has not provided a specific timeline for the launch of Prime Video ads.
Despite the introduction of ads, Amazon has stated that it will not change the current price of Prime membership, which is $14.99 per month or $139 annually. However, the company will offer a new ad-free tier for U.S. Prime members at an additional cost of $2.99 per month. Pricing details for other countries will be announced at a later date. It is important to note that the ad-free tier will still include advertising in live event content, such as sports.
According to Amazon, the introduction of ads is aimed at continuing to invest in compelling content and increasing that investment over time. In 2022, the company spent $16.6 billion on digital video and music content, with a significant portion going towards originals, live sports, and licensed third-party video content. Some notable investments include Thursday Night Football, which costs $1 billion annually, and “Lord of the Rings: The Rings of Power,” which had a budget of approximately $60 million per episode for its first season.
With this move, Prime Video joins other major streaming platforms that already offer ad-supported tiers, such as Netflix, Disney+, Hulu, HBO Max (now Max), and Paramount+. Amazon also has a separate free ad-supported streaming TV service called Freevee.
Apple TV+ remains one of the few big-name streamers that is completely ad-free. However, there have been speculations that this may change in the future, as Apple recently hired a head of video ad sales.
Amazon has assured Prime members that the number of ads on Prime Video will be significantly lower than traditional TV and other streaming platforms. The company will send out an email to Prime members several weeks before the launch of ads, explaining how to sign up for the ad-free tier.
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