Amazon Prime members have long enjoyed an ads-free Prime Video streaming experience along with their free package deliveries -- but soon enough, they'll have to pay extra to enjoy Daisy Jones & the Six or Outer Range sans commercials.
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Amazon has revealed that starting in early 2024 (with an exact date yet to be determined), its Prime Video service will include limited advertisements. This ad-supported option will become the default choice for Prime Video, which is bundled with an Amazon Prime membership, providing perks like free shipping on orders and access to Amazon Music. The regular price of a Prime subscription won't increase next year, but viewers who prefer ad-free Prime Video will have the option to pay an additional $2.99 per month. Amazon will notify users a few weeks before introducing ads on Prime Video, providing guidance on how to opt for an ad-free viewing experience.
Prime Video is following the footsteps of previously ad-free platforms like Netflix, Disney+, and Warner Bros. Discovery's Max in exploring advertising as an additional revenue source alongside subscription fees. Platforms such as Hulu, Peacock, and Paramount+ have offered ad-supported plans from their inception. Amazon's ad-supported streaming service, Freevee, will remain unaffected by this change to Prime Video.
Amazon's rationale for introducing ads on Prime Video is to sustain long-term investments in content, including original series and live sports like the NFL's Thursday Night Football, which costs $1 billion annually. Amazon assures that Prime Video will have "significantly fewer" commercials than traditional TV.
While ad-supported tiers for streaming services often come with lower monthly fees or no extra cost, the combination of subscription fees and advertising can enhance the overall profitability of these offerings. According to Mark Loughney, a senior consultant at Hub Research, viewers generally don't mind advertising in video content and can even perceive benefits from it, such as access to more affordable video plans and an improved viewing experience when ads are thoughtfully integrated.
The rollout of ads on Prime Video will commence in early 2024 in the United States, so until then, enjoy your ad-free binging.
