Amazon Prime Video will start showing advertisements in its films and TV shows in 2024. Prime Video is part of the Prime subscription that costs $14.99 a month and offers free shipping and other benefits. The company said that the adverts will help fund more original content and give more choices to viewers.
Why is Amazon adding adverts to Prime Video?
Although the company intends to add adverts to Prime Video, which will allow it to continue investing in compelling content and keep increasing that investment over a long period of time, the company plans to have fewer ads than linear TV and other streaming providers.
The ads will not be bothersome as they will be relevant and tailored to the user’s preferences, and they will not interrupt the viewing experience.
The ad-supported options will not only bring additional revenue to Amazon but also will give consumers a cheaper option as the list of streaming apps grows.
How to opt out of adverts on Prime Video
Those who do not want to be bothered by the ads will need to pay an extra $2.99 every month. However, live events and sports will still have ads in this tier. The company said that it will send an email to Prime customers in the weeks before the advert rollout, which will include the option to sign up for the ad-free tier.
The move follows Netflix, the streaming giant, which started offering a cheaper, ad-supported plan last year. Initially, Netflix was slow to embrace advertising, but as subscriber growth slowed, the company introduced the option in an effort to boost revenue.
It is important to mention here that the company recently removed its cheapest, ad-free plan in a push to get more sign-ups for its ad option. Amazon executives have said that the economics of its ad plan were higher than the basic plan and that advertising is incremental to Netflix’s revenue and profit.