Prime Video ads to launch in 2024 on Amazon
Amazon To Introduce Prime Video In 2024
In 2024, Amazon Prime Video plans to follow suit with its streaming competitors by introducing advertisements and unveiling a premium ad-free subscription tier. Throughout the industry, subscriber growth has decelerated since the onset of the pandemic, prompting this move.
On Friday, the leading US tech giant announced its plans to roll out advertisements in several key markets starting in early 2024. Initially, ads will be introduced in the United States, the United Kingdom, Germany, and Canada, with further expansion into France, Italy, Spain, Mexico, and Australia later in the year.
For customers who prefer an ad-free experience, Amazon will offer a premium tier at an additional cost of $2.99 per month in the United States. This is in addition to the existing Prime subscription, which currently stands at $14.99 per month or $139 per year. Pricing details for other countries will be disclosed at a later date, as indicated by the company.
Also Read | Amazon’s Innovative Approach: Amazon ‘Enhancing’ Reviews with AI
Netflix and Walt Disney have taken similar steps, introducing these measures with the expectation that increased advertising revenue will offset the deceleration in new subscriber sign-ups.
Yet, the adoption of ad-supported plans has been sluggish. In an effort to stimulate interest in this tier, Netflix has discontinued its basic ad-free plan in both the US and the UK, while Disney has opted to raise prices for its ad-free offerings.
Amazon, on the other hand, has already been displaying advertisements during live events like the NFL’s Thursday Night Football. Notably, this practice will persist even if a subscriber has opted for the ad-free plan, as stated by the company.
Amazon has outlined its intention to incorporate fewer advertisements compared to conventional TV and other streaming competitors. Furthermore, the company assured that it will not be raising prices for the existing Prime membership plan in 2024.
Also Read | Eight things we learned from Intel’s Innovation keynote
While Amazon does not disclose specific Prime membership figures, estimates from Insider Intelligence suggest that Amazon Prime boasts a substantial 157.3 million subscribers, making it the third-largest video-streaming platform in the United States, trailing only behind YouTube and Netflix.
In August, Amazon exceeded expectations with quarterly sales growth and profit after two underwhelming earnings reports. This performance was driven by improvements in its primary growth pillars, namely e-commerce and cloud computing.
