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 include the United States, United Kingdom, Germany, and Canada, with France, Italy, Spain, Mexico, and Australia to follow later in the year.
The company clarified that it will not be changing the current price of Prime membership, which is $14.99 per month or $139 annually. However, a new ad-free tier will be available for U.S. Prime members at an additional cost of $2.99 per month. Pricing for this tier in other countries will be announced at a later date. It’s important to note that the ad-free tier will still include advertising in live event content, such as sports.
Amazon’s decision to introduce ads on Prime Video is driven by its commitment to investing in compelling content and increasing that investment over time. In 2022 alone, Amazon spent $16.6 billion on digital video and music content, with a significant portion allocated to originals, live sports, and licensed third-party video content.
Other major streaming platforms, including Netflix and Disney+, have already introduced ad-supported tiers. Amazon also offers 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 about a potential ad-supported tier in the future, as Apple recently hired Lauren Fry as head of video ad sales.
Amazon aims to have fewer ads than traditional linear TV and other streaming TV providers. Prime members will receive an email notification several weeks before the launch of ads, explaining how to sign up for the ad-free Prime Video experience.
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