OTT: Amazon Prime Video to roll out ads; date inside
What's the story
Amazon Prime Video is set to introduce commercials to its series and movies in the United States, United Kingdom, Germany, and Canada starting January 29, 2024.
As per Deadline, a note sent to subscribers stated the "limited advertisements" will allow the platform "to continue investing in compelling content and keep increasing that investment over a long period of time."
Ads will be rolled out in France, Italy, Spain, Mexico, and Australia later in 2024.
Details
Ad-free option for subscribers and exemptions
For those who prefer an ad-free experience, the OTT giant will offer an option available for an extra $2.99 per month. Customers can pre-register for this ad-free plan, with billing starting on January 29.
It is also important to note that ads will not appear on purchased or rented content, while customers in Guam, the US Virgin Islands, and the Mariana Islands will not be shown ads.
What Next?
Amazon's advertising ambitions
This decision highlights Amazon's growing focus on advertising. In recent years, the company has expanded its ad presence through live sports and ad-supported platforms like Freevee and Twitch.
Although Amazon's $38 billion ad revenue only accounted for a small portion of its $502 billion total annual revenue last year, it has been growing at over 20% per quarter.
With this change, Apple TV+ remains the only major streaming platform with a pure subscription-based model.