Amazon is gearing up to incorporate advertisements into its Prime Video streaming platform in 2024, with the aim of channeling more resources into the production of TV shows and films. Starting early next year, UK Prime subscribers, as well as those in the US, Germany, and Canada, will encounter ads unless they opt for an “ad-free” option at an extra cost.
Amazon emphasized that Prime Video still provides excellent value despite this change. This move follows a trend seen with competitors like Disney+ and Netflix.
In 2024, Amazon intends to expand ads to France, Italy, Spain, Mexico, and Australia. In the United States, they will introduce an “ad-free” subscription tier for an additional $2.99 per month for Prime members. Pricing details for other countries will be disclosed later.
Currently, a Prime subscription in the UK costs £8.99 per month or £95 per year, offering not only free one-day delivery on products but also access to its streaming service.
In their announcement, Amazon stated, “To continue investing in compelling content and to increase that investment over the long term, starting in 2024, Prime Video shows and movies will feature limited advertisements in the UK.” However, customers have expressed disappointment, echoing similar announcements from other streaming platforms like Disney+ and Netflix.
Amazon also stated their intention to have “meaningfully fewer ads than linear TV and other streaming TV providers.” They will contact Prime members a few weeks prior to introducing ads to explain how to opt for the ad-free option, except for live event broadcasts like sports, which will continue to include ads for ad-free subscribers.
Amazon’s Evolution of Prime
In 2005, Amazon introduced Prime with its pioneering benefit of free Two-Day Shipping on a million items. Over the years, they’ve invested in their infrastructure to expand product selection and delivery speed. Today, Prime offers over 300 million items with free shipping and same-day or one-day delivery in many areas.
Prime has evolved to encompass savings, convenience, and entertainment in a single membership. This includes exclusive deals, events like Prime Day, a wide range of entertainment options such as movies, series, music, and more.
Amazon has heavily invested in Prime Video, offering a vast selection of content, including award-winning Amazon Originals and live sports. Prime Video’s growth includes Amazon MGM Studios earning 68 Primetime Emmy Award nominations.
To further invest in content, Amazon plans to introduce limited ads in Prime Video shows and movies starting in early 2024. They aim to have fewer ads compared to traditional TV and other streaming services. Ads will debut in the US, UK, Germany, and Canada, followed by other countries. The price of Prime membership remains unchanged in 2024, and an ad-free option will be available for an extra $2.99 per month for US Prime members.
Amazon will inform Prime members before introducing ads, and they will have the option to subscribe to the ad-free plan.
Streaming Service Trends
Kantar’s data reveals that people scaled back on video streaming subscriptions last year due to rising living costs. The UK saw a decline of two million paid video streaming subscriptions, dropping from 30.5 million to 28.5 million, though demand saw a temporary boost during the holiday season before returning to cutbacks.
