Amazon Prime Video to Offer Ads or $2.99 Monthly Fee to Avoid Them

Starting early next year, Amazon Prime Video will be introducing advertising during shows and movies, following other streaming services that have implemented different subscription tiers.

Amazon Prime members will have the option to pay $2.99 per month in the U.S. to enjoy an ad-free experience, the company announced on Friday.

The streaming services industry is highly competitive, with users frequently switching between platforms depending on pricing. If prices increase, there is a risk of losing customers. However, if new and appealing content is not generated, users may still choose to leave the platform.

Disney, starting mid-October, will charge $13.99 per month in the U.S. for Disney+ without ads, which is 75% more expensive than the ad-supported version. Netflix currently charges $15.49 monthly for its ad-free plan, more than double the cost of the subscription with ads.

Amazon stated that limited advertisements will be shown during shows and movies starting early next year. This will allow them to continue investing in compelling content over a longer period of time.

Live events on Amazon Prime, including sports, already include advertising.

Ads within Prime Video content will first be introduced in the U.S., U.K., Germany, and Canada in early 2024, followed by France, Italy, Spain, Mexico, and Australia later in the year.

Amazon clarified that there will be no changes to the price of Prime membership next year. Information regarding pricing for ad-free programming in countries other than the U.S. will be announced at a later date.

U.S. users will receive an email several weeks before the introduction of ads, providing information on how to sign up for the ad-free option if desired.

Amazon Prime Video is just one of many benefits included in an Amazon Prime membership. Other perks include free shipping on Amazon.com, access to online music, and more.

In June, Amazon was accused by the Federal Trade Commission of enrolling consumers into Amazon Prime without their consent and making it difficult for them to cancel subscriptions. Amazon denied these allegations.