Amazon has confirmed that it will begin showing “limited advertisements” to users of its Prime Video service globally. This change follows similar updates by streaming platforms like Disney+ and Netflix, although these services offer ad-supported tiers at lower prices instead of showing ads to all users.
Under this new initiative, Amazon Prime subscribers in the UK will have the option to go ad-free for an additional £2.99 charge. Amazon’s decision to introduce ads aims to generate additional revenue from subscribers, which will be reinvested in creating compelling content.
In an email sent to Prime members, Amazon stated that this change will enable them to “continue investing in compelling content and keep increasing that investment over a long period of time.” The company intends to have “meaningfully fewer ads than ad-supported TV channels and other streaming TV providers.
This development aligns with the tech giant’s earlier announcement that it would introduce advertising on Prime Video in multiple countries, including the UK, US, Germany, Canada, and others. Starting from January 29, 2024, users in the US will begin to see advertisements on the platform.
Importantly, Amazon clarified that users are not required to take any action before the change takes effect, and there will be no alteration to the current price of a user’s membership unless they opt for the ad-free option.
Amazon Prime membership in the UK currently costs £8.99 per month and includes services such as next-day and same-day delivery for millions of items on the marketplace, ad-free music streaming on its platform, and access to original TV series and films available on Prime Video. The company has confirmed that the price of Prime membership will not change in 2024.
Streaming services have increasingly turned to advertising as a means of generating additional revenue from their subscriber base, which is then reinvested in producing new content to attract and retain viewers.