Amazon Prime Video to introduce ads or offer an ad-free option for $2.99 monthly

Amazon Prime Video is set to introduce advertising within its shows and movies from early next year. This change puts Amazon in line with other streaming services that have diversified their subscription offerings.

Amazon Prime members in the United States will have the option to pay an additional $2.99 per month to enjoy an ad-free streaming experience, the company announced on Friday.

The battle for streaming supremacy has become increasingly competitive, with viewers becoming more price-conscious and willing to switch between services. Streaming platforms face the dilemma of potentially losing subscribers with price increases, but they also need to continuously deliver compelling content to retain and attract users.

Disney recently announced its plan to charge $13.99 per month for an ad-free version of Disney+ for U.S. customers, starting from October 12. Meanwhile, Netflix already charges $15.49 per month for its ad-free subscription tier.

Amazon has stated that it will incorporate limited advertisements into its shows and movies to support its investment in creating engaging content over an extended period. Notably, live events on Amazon Prime, such as sports, already include advertising.

The introduction of ads on Prime Video content will first roll out in the United States, the United Kingdom, Germany, and Canada in early 2024, with France, Italy, Spain, Mexico, and Australia following later in the year.

Amazon emphasized that it does not plan to change the price of its Prime membership for the upcoming year. Pricing details for ad-free programming in countries outside the U.S. will be announced at a later date.

For U.S. Prime users, Amazon will send out emails to members several weeks before ads are introduced into their programming, providing information on how to opt for the ad-free option, should they choose to do so.

Amazon Prime Video is just one component of the comprehensive range of benefits offered by Amazon Prime membership. Alongside streaming content, members enjoy perks such as free shipping on Amazon.com purchases, access to groceries, online music, and more.

It’s worth noting that back in June, Amazon faced accusations from the Federal Trade Commission (FTC) regarding alleged unauthorized enrollment of consumers into Amazon Prime and making it challenging for them to cancel their subscriptions. At that time, an Amazon spokesperson vehemently denied the FTC’s claims, asserting their falsehood.