And the big news is here. Amazon Prime Video has announced the date from which people will start seeing ads on the platform. Just to give you a heads-up, it is on January 29. It took them almost a year to begin this step as they were not getting any advertisers. But, they have begun now with the change. The company states that this move allows them to invest in more content without increasing the current Prime membership cost of $14.99 per month or $139 annually.
Customers, however, have the option to pay an additional $2.99 per month for an ad-free experience. This decision brings the cost of ad-free Prime to just under $18 per month and standalone Prime Video to just under $12.
Amazon emphasizes having “meaningfully fewer ads than linear TV and other streaming TV providers.” It may maintain a balance between ad revenue and user experience. It also positions Amazon against competitors like Disney Plus, Hulu, Max, Netflix, and Paramount Plus, which all incorporate ads in their cheaper subscription tiers.
Interestingly, Amazon’s move aligns with Netflix’s strategy to gradually raise subscription rates and introduce ads on lower-cost plans. This development, while not affecting the base cost of Prime, prompts subscribers seeking an uninterrupted viewing experience to pay more.
It’s noteworthy that Amazon also operates Freevee, a free, ad-supported streaming service. The company’s email clarifies that Freevee and live event content, such as sports, will continue to include advertising.
There is no clarification whatsoever about the arrival of advertisements in India. Stay tuned, we will certainly let you know.