Prime Video by Amazon to Introduce Advertisements for Subscribers
By DaMarko Webster
Amazon is introducing a novel approach to generate revenue from its video streaming service. Following the initial announcement in September, the company is set to introduce advertisements on its Prime Video platform starting at the end of the coming month.
Current subscribers pay either $15 USD monthly for a comprehensive Amazon Prime membership or $9 USD for exclusive access to Prime Video. Under the new initiative, Amazon plans to display ads to users subscribed to either of these memberships, unless they opt for the $3 USD monthly ad-free version.
Beginning January 29, users in the United States will experience “limited advertisements” during content consumption, while the introduction of ads in the UK and Germany is scheduled for February 5.
While certain streaming platforms, like Netflix, have introduced ad-supported subscription tiers at a lower cost, Amazon’s strategy distinguishes itself by maintaining the existing price structure for Prime Video.
In an email communication addressed to Prime Video members, Amazon clarified that the inclusion of ads aims to enable the company to “sustain investments in compelling content and consistently enhance contributions over an extended duration.”
Amazon assured subscribers that the ad experience would not be overwhelming, promising to feature “significantly fewer ads compared to ad-supported TV channels” and other service providers.