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The ads are coming Amazonfrom Prime Video.
The company announced Friday that its streaming service — part of Prime subscriptions that cost $14.99 per month — will now offer limited ads in its TV series and movies.
Advertising on Prime Video, known for shows such as “The Boys” and “The Marvelous Mrs. Maisel,” will roll out in the U.S. and other cities in early 2024, with other countries to follow later in the year. If US customers don’t want ads, they will have to pay an additional $2.99 per month. Live events and sports will continue to feature ads at this level, the company said in its announcement.
Prime customers will receive an email in the weeks leading up to the ad rollout, which will include the option to sign up for the ad-free tier.
“To continue investing in engaging content and continue to grow that investment over an extended period of time, starting in early 2024, Prime Video shows and movies will include limited ads,” the company said in a post Friday.
Amazon said it plans to run “significantly fewer ads than linear TV and other streaming providers.”
Prime Video will now join competing streaming services including Netflix, Discovery of Warner Bros.it’s Max and DisneyIt’s Hulu and Disney+, which rely on advertising. Ad-supported options not only provide consumers with a cheaper option as the list of streaming apps grows, but also generate an additional revenue stream.
Media companies in particular have tried various ways to make the streaming business profitable, from advertising to cracking down on password sharing to cutting costs.
Streaming giant Netflix shifted gears late last year and began offering a cheaper, ad-supported plan. Netflix was slow to adopt advertising, but as subscriber growth slowed, the company instituted the option in an effort to increase revenue.
The company recently removed its cheapest, ad-free plan in an effort to get more sign-ups for its ad option. Company executives said the economics of its advertising plan were superior to those of the basic plan and that advertising added to Netflix’s revenue and profits.