Amazon Prime Video to Introduce Ads; Ad-Free Option Available for Monthly Charge
Amazon Prime Video is set to incorporate advertising into its streaming service starting early next year, following the trend of other streaming platforms that offer various subscription tiers.
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To maintain an ad-free experience, Amazon Prime members in the US can opt for a $2.99 monthly subscription fee.
Streaming services are fiercely competing for viewers, and consumers are becoming increasingly adept at switching between platforms based on pricing and content. Balancing price hikes and content quality is a challenging task for these platforms.
Disney, for instance, will introduce a $13.99 per month ad-free Disney+ subscription in the US in mid-October, marking a 75% increase compared to the ad-supported plan. Meanwhile, Netflix already charges $15.49 per month for its ad-free offering, more than double the cost of its ad-supported counterpart.
Amazon's move to introduce limited advertisements during shows and movies is aimed at fueling investments in content creation over an extended period.Notably, live events on Amazon Prime, such as sports, have featured advertising for some time.
The rollout of ads in Prime Video content will commence in the US, UK, Germany, and Canada early next year, with additional countries like France, Italy, Spain, Mexico, and Australia following suit later in the year.
Importantly, Amazon clarified that there would be no changes to the price of Prime membership in the coming year. Pricing details for ad-free programming in countries other than the US will be disclosed at a later date.
Amazon intends to notify its US Prime members via email several weeks before introducing ads into its content, providing information on how to opt for the ad-free option if they wish to do so.
Amazon Prime Video is just one of the many perks included in an Amazon Prime membership, which also encompasses benefits like free shipping, access to groceries, online music, and more.
Earlier in the year, the Federal Trade Commission (FTC) accused Amazon of involuntarily enrolling consumers into Amazon Prime and making it challenging for them to cancel their subscriptions. Amazon disputed the FTC's claims, asserting they were false.
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By: Vibha Kapoor
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