Amazon to show ads on Prime Video movies and shows starting January 29, 2024


Expert Tip: Upgrade Your Subscriptions

Expert Tip: Upgrade Your Subscriptions 02:28

Amazon will begin streaming ads on its Prime Video movies and TV shows on January 29.

That means Prime Video subscribers, who pay $139 a year for a Prime membership, will see “limited” ad interruptions after that date, Amazon said Tuesday in a statement to customers. People who pay for the standalone subscription to Prime Video, which costs $8.99 a month, will also see ads starting January 29.

However, Amazon said subscribers can avoid ads by paying a Additional $2.99 ​​per month for an ad-free subscription.

Prime Video's new subscription strategy comes amid an industry-wide shift toward a tiered subscription model. Streaming platforms like Disney+, Netflix, Hulu and Peacock have already introduced ad-supported subscription options alongside more expensive ad-free offerings.

“This will allow us to continue investing in engaging content and continue to grow that investment over a long period of time,” Amazon said in the email. “Our goal is to have significantly fewer ads than linear TV and other streaming TV providers.”

Amazon, which first announced the level without advertising in September, did not immediately respond to CBS MoneyWatch's request for comment.

Streaming services are adopting tiered subscription models to boost revenue as they invest huge amounts of money in expensive content amid the escalation of streaming wars. The tiered model increases sales by generating advertising dollars and incentivizing some subscribers to shell out more money for higher-tier subscriptions. according to the US Chamber of Commerce

Amazon's advertising business, which includes ads on Amazon Marketplace and Freevee, has been a major source of revenue for the company. In the third quarter, the tech giant earned approximately $12 billion in advertising revenue, up 26% from the same quarter last year, according to the company's financial statement. sample.

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