Amazon Prime Video to show ads unless you pay more
Amazon Prime Video will start showing ads to users in the US, UK, Germany, and Canada in early 2024, followed by France, Italy, Spain, Mexico, and Australia later in the year. The company says that the ad-free tier will be available for an additional $3 per month.
The news comes as a surprise to many, as Amazon Prime Video has not previously shown ads next to movie and TV content. The company says that the decision to introduce ads will allow it to continue investing in compelling content.
Amazon says that the ads will be “limited” and that it aims to have “meaningfully fewer ads than linear TV and other streaming TV providers.” However, it is unclear how many ads users will have to watch.
Impact on subscriber numbers
The introduction of ads to Amazon Prime Video is a significant change for the service. It is unclear how the change will impact subscriber numbers. Some users may be willing to pay an extra $3 per month to avoid ads, while others may be turned off by the change and cancel their subscriptions.
It is also worth noting that Amazon is introducing other changes to its Prime membership, such as new fees for same-day deliveries. These changes could also have an impact on subscriber numbers.
Overall, the introduction of ads to Amazon Prime Video is a risky move. It is unclear whether the company will be able to maintain its subscriber base in the face of this change.
Additional thoughts
Some analysts believe that Amazon’s decision to introduce ads to Prime Video is a sign that the company is facing increasing competition from other streaming services, such as Netflix, Hulu, and Disney+. These services have all been investing heavily in original content, and Amazon is likely feeling the pressure to keep up.
It is also worth noting that Amazon has been experimenting with ads in other areas of its business. For example, the company recently launched a new ad-supported version of its Freevee streaming service. This suggests that Amazon is becoming more open to using ads as a way to generate revenue.
It remains to be seen how the introduction of ads to Amazon Prime Video will impact the service and its users. However, it is clear that Amazon is making a number of changes to its Prime membership in an effort to maintain its competitive edge.
