Amazon will roll out ads on Prime Video in 2024. Membership growth has slowed since the outbreak, so next year, Amazon (AMZN.O) Prime Video will introduce commercials and a more expensive ad-free tier like its competitors.
Commercials will first air in the United States, the United Kingdom, Germany, and Canada in early 2024, with subsequent markets including France, Italy, Spain, Mexico, and Australia.
While Amazon Prime costs $14.99 per month or $139 per year, Amazon’s ad-free tier will only cost $2.99 per month in the United States. The business has claimed it will disclose prices for other countries in the future.
Due to the decline in subscriber growth, both Netflix (NFLX.O) and Walt Disney (DIS.N) have increased their focus on advertising.
Plan expansions that include advertising have been organized. Disney has increased the price of its commercial-free tiers to attract more customers. At the same time, Netflix has eliminated its most basic commercial-free plan in the United States and the United Kingdom.
Amazon has indicated that despite paying for the ad-free package, advertising would still be shown during live events such as Thursday Night Football.
The company has promised no increase in Prime prices in 2024 and less advertising than traditional television and competing streaming services.
The online store does not share several Prime subscribers. According to Insider Intelligence, Amazon Prime is third in the United States regarding membership count, behind only YouTube and Netflix.
Due largely to advancements in e-commerce and cloud computing, Amazon reported better-than-expected quarterly sales growth and profit in August, following two disappointing financial reports.
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