Amazon will introduce ads in Prime Video content in the United States, UK, Germany and Canada in early 2024.
This will be followed by France, Italy, Spain, Mexico and Australia later in the year.
In its announcement released Friday, Amazon said that it would aim “to have meaningfully fewer ads than linear TV and other streaming TV providers”.
Amazon is the last major streamer to announce plans to run advertising following similar moves from Netflix, Disney+ and Max. However, unlike Netflix which initially introduced a lower priced tier for those willing to accept advertising, Amazon will charge US customers an additional $2.99 per month not to see the commercials. It will share pricing for other countries at a later date.
In the UK a Prime subscription, which includes free one-day delivery on goods, Deliveroo, as well as access to its streaming service and basic music streaming, costs £8.99 per month, or £95 a year.
“To continue investing in compelling content and keep increasing that investment over a long period of time, starting in 2024, Prime Video shows and movies will include limited advertisements in the UK,” it said.
Amazon will not make changes in 2024 to the current price of Prime membership.
It said the decision to run ads during Prime Video content would help it “continue investing in compelling content and keep increasing that investment over a long period of time.”
Live event content such as sports will continue to include advertising.
In April, Kantar reported number of people subscribing to at least one video service in Great Britain has fallen by 1.51 million as the cost of living crisis continued to bite. Amazon will be looking to ensure advertising continues to lock people into its bundle at a lower price.
Source: https://www.broadbandtvnews.com/2023/09/22/amazon-to-introduce-ads-on-prime-video/