Amazon is set to begin inserting ads into its programming. From 2024, subscribers can expect advertisements when viewing their favourite shows. This was announced by the company today.
Amazon shows on its Prime Video Service will have what the company calls “limited advertisements. We all know that ads are the juice of the internet. Thus, Amazon says the funds collected from Ads will help it invest back into the platform.
“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. We aim to have meaningfully fewer ads than linear TV and other streaming TV providers,” stated Amazon.
Spending on content creation for the platform rose by nearly 30% in 2022 to $16.6 billion.
Subscribers to Pay More to Avoid Ads
The Ads will be visible first to Amazon Prime Subscribers in the UK, USA, Germany, and Canada. Later on, the feature will roll out to France, Italy, Spain, Mexico and Australia. The company is yet to indicate if the move will be global.
However, there will be an “Ad Free’ option for those willing to pay an extra fee. Notably, live sports events will still have ads even for those who have upgraded. The subscription comes at an extra $2.99 (KES 440) per month for Prime subscribers in the United States. Currently, the company has not released other regions’ prices for the Ad-free package.
Amazon’s change brings it in line with its rivals, like Netflix and Max, adding ad-supported tiers as companies search for additional revenue. Disney+ announced plans for an ad-supported service in August, while Netflix introduced its “basic with ads” streaming plan last year.
The company didn’t reveal how long the ad breaks will be.