Amazon Prime Video announced plans to introduce advertisements during its shows and movies beginning in early 2024, with pricing tiers for ad-supported and ad-free content to maintain investment in content.
New Direction: Amazon stated that ads will be added to Prime Video content starting in 2024, maintaining its $14.99 per month subscription cost.
* Prime Video’s ad inclusion aims to allow for continued content investment over a prolonged period.
* The company promises to have “meaningfully fewer ads” than other streaming TV providers and linear TV.
Details of the Plan: Amazon Prime Video will offer two tiers of subscriptions
* These tiers will be introduced first in the US, UK, Germany, and Canada in early 2024, followed by France, Italy, Spain, Mexico, and Australia later in the year.
* Emails will be sent to Prime members several weeks before these changes go into effect with instructions on how to opt for ad-free viewing.
Broader Streaming Trend: This follows a pattern of other streaming services introducing ad-tier systems to maintain affordable subscription costs without compromising on content.
* Disney+ and Netflix introduced similar pricing models for ad-free content last year, and Apple TV+ has reportedly hired a digital video advertising executive to potentially develop a similar model.
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