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Ads are coming to Amazon‘s Prime Video.
The corporate announced Friday that its streaming service — a component of Prime subscriptions that cost $14.99 a month — will now have limited ads in its TV series and flicks.
Promoting on Prime Video, known for shows comparable to “The Boys” and “The Marvelous Mrs. Maisel,” will roll out within the U.S. and other cities in early 2024, with other countries to follow later within the yr. If U.S. customers don’t desire commercials, they are going to should pay an extra $2.99 a month. Live events and sports will proceed to feature ads on this tier, the corporate said in its announcement.
Prime customers will get an email within the weeks leading as much as the promoting rollout, which is able to include the choice to join the ad-free tier.
“To proceed investing in compelling content and keep increasing that investment over an extended time frame, starting in early 2024, Prime Video shows and flicks will include limited advertisements,” the corporate said in a post Friday.
Amazon said it plans to have “meaningfully fewer ads than linear TV and other streaming providers.”
Prime Video will now join rival streaming services, including Netflix, Warner Bros. Discovery‘s Max and Disney‘s Hulu and Disney+, which can be leaning on promoting. The ad-supported options usually are not only giving consumers a less expensive option because the list of streaming apps grows, but are also bringing in an extra revenue source.
Media firms particularly have been trying a wide range of ways to make the streaming business profitable, from promoting to password-sharing crackdowns to cost cutting.
Streaming behemoth Netflix switched gears late last yr and commenced offering a less expensive, ad-supported plan. Netflix was slow to embrace promoting, but as subscriber growth slowed, the corporate instituted the choice in an effort to spice up revenue.
The corporate recently removed its most cost-effective, ad-free plan in a push to get more sign-ups for its ad option. Company executives have said the economics of its ad plan were higher than the essential plan, and that promoting is incremental to Netflix’s revenue and profit.