As memberships to Disney+ and Netflix decline, both services have begun incorporating commercials to offset losses in revenue.
Amazon Prime Video will become more in line with rivals like Netflix and Warner Bros. next year when it begins offering episodes and movies with fewer commercial breaks.
Ads will be included in Prime Video starting next year
While once reluctant to include ads, streaming services are beginning to give in. Even successful services like Netflix have had to incorporate adverts for some time, and now Amazon Prime Video has done the same to make ends meet as subscription prices rise and investors want returns.
Beginning in 2019, some Prime Video episodes and movies may include limited commercials; however, an ad-free membership option is available for an additional $2.99 monthly. Amazon will offer this option “several weeks before” releasing ad-supported content, and more details, including pricing, will be provided later.
Amazon claims that this action reflects the company’s commitment to providing high-quality content to Prime subscribers. Prime Video’s original content, including successes like The Marvelous Mrs. Maisel, has been nominated for 68 Emmys and will be expanded with the money made from this partnership.
Amazon Prime Instant Video, a library of classic television series and movies, now includes commercial-free viewing as part of the $139 yearly subscription price for Amazon Prime members but not for non-members. At the beginning of 2024, Prime subscribers in the United States, the United Kingdom, Germany, and Canada can upgrade to this tier. Other countries, including France, Italy, Spain, Mexico, and Australia, will follow suit later that year.
The ad-free plan will cost an extra $2.99 (about ₹ 250) per month
If you’re a Prime Video subscriber in the US and would like not to be subjected to advertisements, Amazon will provide an ad-free alternative for an additional $2.99 monthly. Amazon plans to send emails with instructions on subscribing to this new ad-free watching tier many weeks before advertisements are set to air.
According to the firm, they are taking this action so that they may “continue investing in compelling content while increasing that investment over time.” Additionally, they will have “significantly fewer ads” than broadcast television and other ad-supported streaming services such as Disney+, Hulu+, Warner Bros. Max+, Netflix+, and Paramount+.
However, Amazon has stated that it will not raise the price of its annual membership, which currently costs $139 and includes free shipping, free Audible audiobooks, and access to Prime Video, Music, Reading, Gaming, and Videos. How many subscribers will choose to pay the additional charge is unknown.
There have been rumours that Netflix is considering offering a free, ad-supported version of its streaming service. To earn more revenue from advertisements, an ad-supported tier would offer less content than its premium version, exposing customers to more commercials than they bargained for. However, this strategy has risks; if the subscribers’ favored advertisements become less relevant over time, they may revert to their original provider.
Amazon is looking into introducing an ad-supported tier
Amazon has introduced an ad-supported tier for Prime Video, joining the ranks of other streaming services that have done the same. So that it can keep pouring resources into producing high-quality media, “limited advertisements” will soon be included in TV series and movies. Amazon has announced that their new ad-supported tier would have a monthly price of $2.99.
No solid information has been disclosed at this time, although discussions over the format and details of an ad-supported tier continue to progress. Short commercial breaks, similar to those on WBD Max, are expected. Still, according to The Wall Street Journal (WSJ), existing users may see more advertising than they want in an effort to encourage them to upgrade to an ad-free version.
Despite Amazon’s best attempts to make Prime Video a must-have for all Prime members, the company has yet to convince enough customers to upgrade to its ad-free version. The introduction of advertisements by Amazon will certainly cause users to switch to paid streaming services like Netflix and Disney+. It could also have an impact on subscription income, leading some users to upgrade to a more expensive plan.
The new ad-free plan will be available in India
Ad-free services may be widely used in the West but are less common in India. It makes more sense for OTT firms to incorporate ads to compete against rivals like Disney+ and Netflix, who recently launched plans with advertising support, especially as price-sensitive markets like India become more price-sensitive over time.
If Amazon’s approach in Europe succeeds, the company may roll out an ad-supported tier for Prime Video in India by 2024, as The Wall Street Journal reported. If this plan were enacted, shorter commercials would play before or during videos.
If a Prime member in India upgrades to a paid membership, they can watch material without ads. Amazon will give subscribers at least two weeks’ notice before introducing ads or adding more original content to Prime Video.
It should be stressed, however, that this is all conjecture at this point, and the company has made no announcements regarding any potential changes.
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