Amazon is shaking things up in the streaming world, announcing that starting in early 2024, Prime Video users will encounter ads during shows and movies, unless they opt for an additional $3 per month ad-free subscription. This marks a notable shift for Prime Video, which has been ad-free as part of Amazon’s Prime subscription until now.
Ads Invade Prime Video
In a significant departure from its previous ad-free model, Amazon disclosed that Prime Video content will include limited advertisements beginning in early 2024. While the company didn’t specify the exact number of ads users will encounter, it’s been suggested that “limited advertisements” could translate to approximately four minutes per hour of viewing. Amazon is committed to keeping the ad experience more streamlined than traditional TV and other streaming services.
The Price of Ad-Free Streaming
To maintain an ad-free experience on Prime Video, subscribers will need to pay an extra $3 per month on top of their regular Prime subscription. The pricing for the ad-free tier in other countries will be announced at a later date. This move represents a significant shift for Prime Video, which has been a cherished perk of Amazon Prime membership.
Prime Video’s Current Offering
Prime Video, as it stands, is included for free with Amazon Prime, which costs $139 per year ($15 per month) and offers an array of benefits beyond streaming. It features a wide selection of third-party content, including movies and TV series, as well as Amazon Originals produced by Amazon Studios. Notable titles in the Amazon Originals library include “The Boys,” “The Citadel,” “Air,” “Manchester by the Sea,” and “The Big Sick.”
Global Expansion of Ads
Amazon plans to roll out ads in Prime Video content in stages. The United States, the UK, Germany, and Canada will be the first to experience ads in early 2024, followed by France, Italy, Spain, Mexico, and Australia later in the year. Existing Prime members won’t need to take any action to access the ad-supported content. Amazon emphasizes that this change will not impact the current price of Prime membership.
Amazon’s Rationale
Amazon has justified this shift by explaining that it will enable the company to continue investing in compelling content and increase its investments over the long term. The e-commerce giant points to its extensive library of movies, series, including Amazon Originals, and live sports, such as NFL Thursday Night Football. Notably, Amazon acquired MGM Studios in 2021 for a staggering $8.5 billion, further solidifying its commitment to entertainment.
An Evolving Prime Experience
Amazon has previously ventured into advertising with ads shown alongside live sports streaming on Prime. Additionally, Amazon offers the FreeVee ad-supported site, which features over 100 Prime Video original series and is accessible on various devices, including the Fire TV stick.
In conclusion, Amazon’s decision to introduce ads to Prime Video signifies a significant change in its streaming strategy. While this shift may come as a disappointment to some, it enables Amazon to continue investing in content and expand its entertainment offerings. Users who value an ad-free experience will have the option to maintain it for an additional fee, underscoring the evolving landscape of streaming services and their monetization strategies.
