Amazon Prime Video To Integrate “Meaningfully Fewer” Ads Starting January 2024،
Earlier this year, Amazon Prime Video announced plans to introduce some advertising into its content streaming service. Now, the platform has finalized the date of integration of advertisements. Soon, Prime Video subscribers will start seeing ads while watching their favorite movie or web series via the OTT service.
Ad integration remains limited to the US and a few other regions
Amazon Prime Video informed subscribers in a recent email about the ad integration. The change will happen in regions like the United States, the United Kingdom, Germany and Canada. The email states that limited advertising will allow the platform to continue investing in compelling content. Ultimately, Prime Video wants to increase its revenues.
In the United States, a Prime membership costs $14.99 per month or $139 per year. Besides, Prime Video costs $8.99 per month. These particular packages do not include any advertising at this time. However, when it comes to Netflix's Standard with Ads plan, it costs $6.99 per month. The Standard ad-free plan costs $15.49 per month. In comparison, a Prime Video subscription is already expensive.
Advertising integration will increase platform revenue
When it comes to a streaming service like Prime Video, there are two surefire ways to increase overall revenue. A platform can either increase subscription fees or maintain prices and integrate ads to earn more from brands. Amazon decided to go with the second method as it confirmed that the current membership price remains unchanged.
Users can continue watching ad-free for an additional $2.99 per month
The email also contains a link allowing users to sign up for an ad-free experience by paying an additional $2.99 per month. Although Amazon says it will run fewer ads than linear TV and other streaming TV providers, the platform has yet to reveal the exact amount/length of ads. Still, Prime Video's decision to include promotions is in line with what other popular apps like Netflix and Disney+ are doing.
Will these changes come to India?
For now, the changes do not apply to India. However, in the long term, the streaming service wants to expand ad integration to all markets. Currently, two tiers of Amazon Prime membership are available in India. Regular Prime membership offers shopping benefits and video/audio streaming for Rs. 9,999. 299 per month or Rs. 1,499 per year. On the other hand, Amazon Prime Lite membership only offers the benefits of purchasing at Rs. 9,999. 799 per year.
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