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Ads are coming Amazon‘s Prime Video.
The company announced Friday that its streaming service — part of its $14.99-a-month Prime subscription — will now have limited ads in its TV series and movies.
The ad on Prime Video, known for shows like “The Boys” and “The Amazing Mrs. Maisel,” will roll out in the U.S. and other cities in early 2024, with other countries the following year. If US users do not want ads, they will have to pay an additional $2.99 per month. Live events and sports will continue to be advertised at this level, the company said in a statement.
Prime customers will receive an email a few weeks before the ad goes live that includes the option to sign up for an ad-free tier.
“To continue investing in compelling content and grow that investment over time, starting in early 2024, Prime Video shows and movies will include limited advertising,” the company said. post Friday.
Amazon said it plans to have “significantly fewer ads than linear TV and other streaming providers.”
Prime Video will now join competing streaming services including Netflix, Warner Bros. DiscoveryMax and DisneyHulu and Disney+, which rely on advertising. Ad-supported options not only give users a cheaper option as the list of streaming apps grows, but also bring in an additional source of revenue.
Media companies in particular have tried various ways to make the streaming business profitable, from advertising to cracking down on password sharing to cutting costs.
Streaming behemoth Netflix shifted gears late last year and began offering a cheaper, ad-supported plan. Netflix has been slow to adopt advertising, but as subscriber growth has slowed, the company has introduced the option to boost revenue.
The company recently removed its cheapest, ad-free plan to get more signups for its ad-supported option. Company executives said the economics of its ad plan were higher than the basic plan and that advertising was increasing Netflix's revenue and profits.