Amazon Introduces Limited Ads to Prime Video in the U.S.
Starting this week, Amazon Prime Video users in the United States will notice the presence of “limited” ads while streaming content. This move follows Amazon’s earlier announcement of plans to incorporate ads into its streaming service, signaling a significant shift for the e-commerce giant. The introduction of ads is expected to roll out to other countries in the near future.
To access an ad-free experience on Prime Video, American users now have the option to pay a monthly fee of $2.99 in addition to their existing Prime membership, which costs $14.99 per month. Alternatively, they can subscribe to Prime Video separately for $8.99 per month. Notably, the $14.99 monthly fee for Prime membership has remained unchanged since 2022.
Regardless of the subscription plan chosen, users can expect ads to appear during live events and Amazon Freevee programming. Amazon CEO Andy Jassy has emphasized the significance of Prime Video within the broader Prime ecosystem, highlighting its role as a key driver of customer sign-ups.
Amazon’s decision to introduce ads mirrors similar strategies employed by other streaming platforms, all aimed at bolstering content investments and increasing revenue streams. Platforms like Max, Netflix, and Disney+ have previously introduced ad-supported memberships, with Netflix experiencing notable success in this regard, boasting 23 million monthly active users on its ad-supported tier.
Moving forward, Amazon aims to leverage ads as a substantial revenue source to support continued growth in the coming years. This strategic shift reflects the evolving landscape of streaming services and their efforts to strike a balance between user experience and revenue generation.
