Amazon Prime Video to introduce ads next year

23 September, 2023

Amazon

Amazon will introduce adverts into its Prime Video streaming service next year to raise more money with which to make original content.

Customers in the UK, US, Germany and Canada will start to see ads from early 2024, but they can avoid them by subscribing for an “ad-free” option at an additional cost.

Other territories including France, Italy, Spain, Mexico and Australia will see adverts on Prime Video from later in 2024.

“To continue investing in compelling content and keep increasing that investment over a long period of time, starting in 2024, Prime Video shows and movies will include limited advertisements in the UK,” Amazon said in a statement. It insisted the streamer still offered “compelling value” despite the changes.

Amazon said that it would aim “to have meaningfully fewer ads than linear TV and other streaming TV providers”.

MORZINE, FRANCE – APRIL 04: In this photo illustration, a TV remote control with Netflix and Amazon Prime Video streaming platform buttons is seen on April 04, 2023 near Morzine, France. Netflix is a US media that was founded in 1997 initially selling and renting DVDs. In 2007, Netflix introduced streaming media and video on demand and by 2013, the service began to acquire and produce original content. (Photo by Matt Cardy/Getty Images)

The company will get in touch with Prime members a few weeks before ads are introduced to show how to sign-up for the ad-free option if they wish to.

It’s been confirmed that the “ad-free” subscription tier will cost an extra $2.99 (£2.44) per month in the US, with pricing elsewhere in the world yet to be confirmed.

Live event broadcasts, like sports matches, will still include adverts even for those who sign up to the ad-free option.

Some of Amazon’s rival streamers, including Disney+ and Netflix, have also brought in adverts in recent months, particularly as they have struggled to hold onto customers amid growing inflation worldwide.

Data previously released by analysts Kantar showed that vast numbers of people cut back on video streaming services last year as their disposable incomes were squeezed by the cost of living crisis. Although demand picked up around Christmas, Kantar said, the number decreased again shortly after.

It found that the number of paid-for video streaming subscriptions in the UK fell by two million, from 30.5million to 28.5million.

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