In a notable shift in its streaming service strategy, Amazon Prime Video has announced that starting January 29, its subscribers will need to opt for an additional payment to avoid advertisements during their viewing experience.
This change affects both Amazon Prime and Prime Video members, who have so far enjoyed ad-free streaming of popular shows like “Reacher” and “The Marvelous Mrs. Maisel“.
The new structure requires an extra $3 monthly fee for uninterrupted streaming. Amazon communicated this update in a recent email to customers, following their initial announcement earlier this year about introducing ads into the Prime Video platform.
Amazon’s rationale behind this move is to sustain and escalate their investment in high-quality content over time. The company assures that the number of ads will be significantly less than what is typically seen on linear TV and other streaming services.
This additional fee will apply to all Prime members, who currently pay $139 annually for benefits including Prime Video, and those with standalone Prime Video subscriptions at $9 monthly. Subscribers interested in continuing their ad-free experience can pre-order the ad-free tier.
Prime Video is joining the trend among streaming services to introduce ad-supported tiers. This model was recently adopted by Netflix with a $7 per month ad-inclusive option, attracting nearly 5 million subscribers, alongside price increases for its ad-free plans. Similar strategies have been seen with Peacock and with planned price hikes from Disney and Hulu.
This strategic move by Amazon Prime Video reflects a keen understanding of the current dynamics in the streaming market. Introducing an ad-free option, albeit at an additional cost, aligns with a wider industry trend where services are exploring varied pricing structures to meet diverse viewer preferences.
This approach acknowledges the need for a balance between generating revenue and keeping subscribers content, a crucial aspect for streaming platforms in today’s competitive digital landscape.
