Amazon Prime Video to Introduce Limited Ads in 2024

Starting next year, Amazon will start incorporating a limited number of advertisements into the content available on its Prime Video streaming service, including movies and television shows. Amazon Prime customers in the UK, as well as in the US, Germany, and Canada, will encounter ads unless they choose to pay for an additional “ad-free” subscription option.

Why is it significant: Rival streaming platforms like Disney+, Netflix and NBCUniversal’s Peacock have introduced ad-supported tiers to boost revenue and attract more subscribers. Amazon, facing layoffs in its advertising division, is now prioritizing investments in original content like shows, concerts, and live sports, aiming to capitalize on premium advertising opportunities.

Amazon said, “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.”

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Details: The company stated that they aim to have meaningfully fewer ads than linear TV and other streaming TV providers. Later in 2024, the ads will be introduced in France, Italy, Spain, Mexico, and Australia, following the introduction in the previously mentioned markets.

-The company said there would be no changes in 2024 to the current price of Prime membership.

-It will roll out the “ad-free” subscription tier for an extra $2.99 (£2.44) per month for Prime subscribers in the United States.

-Amazon will include fewer ads on Prime Video than traditional TV and streaming services, but the exact frequency remains unspecified.

-The company will notify Prime members through email several weeks before introducing ads on Prime Video, along with instructions on how to opt out of them.

-Pricing information for Amazon’s ad-free subscription tier in other countries will be disclosed later.

More opportunities: In April, Amazon expressed confidence in the advertising sector’s potential. The company is not only exploring additional advertising avenues on Prime Video but is also actively developing tools for digital marketers to incorporate AI-generated images and videos into their ad campaigns. While this advancement has the potential to enhance product listings and sales, a specific timeline for its implementation has not been confirmed. Furthermore, ad tiers can prove more profitable as they have the potential to increase revenue per subscriber.

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