Amazon has confirmed that advertisements will be integrated into the Amazon Prime Video experience starting early next year.
This move follows a September announcement and has triggered widespread discontent among subscribers, as per The Street.
Amazon Prime Video Introduces Ads
The Prime Video logo is seen on the backdrop for the premiere screening of Amazon Prime's "The Terminal List" at the Directors Guild of America theatre in Los Angeles, June 22, 2022.
According to the communication sent to Prime Video users, customers in the UK and Germany can expect to encounter "limited advertisements" in their streaming content after February 5, while US users will start seeing ads from January 29. To maintain an ad-free experience, subscribers will need to pay an additional $3.81.
While rivals like Netflix and Disney have already introduced more affordable ad-supported streaming packages, Amazon's ad-supported tier does not come at a reduced cost. Instead, subscribers will face a higher fee for an ad-free viewing experience.
Major streaming platforms are shifting their strategies in response to a slowdown in subscriber growth following the pandemic. The companies are focused on boosting profitability through the implementation of ad-supported tiers, modifications to pricing models, and reductions in content-related expenditures.
In an email sent to Prime Video members, Amazon has defended its decision to introduce advertisements, citing the need to sustain its investment in engaging content and ensure continued growth over an extended duration.
Amazon has provided reassurance to its users, stating that the quantity of advertisements they can expect to encounter on the platform will be notably reduced compared to the levels typically observed on ad-supported television channels and other streaming service providers, according to The Guardian.
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Amazon Prime Video Ads Confirmed
Amazon has made previous announcements regarding its intentions to introduce advertising in several countries, such as the UK, US, Germany, and Canada. In a recent statement, the company has made it clear that the current price of the Prime subscription in the UK, which stands at £8.99 per month, will not be altered. However, customers do have the option to choose the ad-free alternative, which may result in a different pricing structure.
Netflix, having introduced its ad-supported tier in late 2022, currently boasts approximately 15 million global subscribers to this option, priced at $6.36 per month. In contrast, Disney+ offers an ad-supported package for £4.99 per month and a standard ad-free package for $1-.18
Amazon's advertising expansion is not limited to the US, as users in the UK, Germany, and Canada will also be affected. Customers in France, Italy, Spain, Mexico, and Australia can anticipate the change in the new year.
Currently, Amazon Prime Video can be accessed either through a separate subscription at a monthly rate of $8.99 or as a component of an Amazon Prime membership, which is priced at $14.99 per month or $139 per year.
Amazon, emphasizing its commitment to Prime Video, highlighted its extensive content selection, including Amazon Originals and live sports. The company underscored its substantial investment in the platform, with MGM Studios earning 68 Primetime Emmy Award nominations in the past year. Despite the customer backlash, Amazon appears resolute in its strategy to integrate ads into its streaming service, Peoples reported.
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