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Amazon will roll out ads on Prime Video in 2024

Amazon Prime Day 2023: Unveiling the Biggest Sales Event in Company History

Amazon (AMZN.O) Prime Video will join streaming rivals in introducing advertisements and a higher-priced ad-free tier next year as member growth slows since the epidemic.

On Friday, the U.S. tech giant announced commercials will launch in the U.S., UK, Germany, and Canada in early 2024, followed by France, Italy, Spain, Mexico, and Australia.

Amazon’s ad-free tier will cost $2.99 per month in the U.S., where Prime costs $14.99 per month, or $139 per year. The company said other country pricing will be provided later.
As subscriber additions slow, Netflix (NFLX.O) and Walt Disney (DIS.N) have taken similar steps to boost ad revenue.

Ad-supported plans have grown slowly. Disney has hiked rates for its ad-free tiers, while Netflix has discontinued its basic commercial-free plan in the U.S. and U.K. to promote subscribers.

Amazon stated it will continue to show commercials on live events like Thursday Night Football even if the subscriber has paid for the ad-free plan.

The business stated it would have less advertising than traditional T.V. and other streaming providers and not hike Prime fees in 2024.

The online retailer does not disclose Prime membership figures. With 157.3 million subscribers, Amazon Prime ranks third in the U.S. after YouTube and Netflix, according to Insider Intelligence.

After two dismal earnings reports, Amazon posted better-than-expected quarterly sales growth and profit in August due to e-commerce and cloud computing improvements.

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