- By Ashish Singh
- Fri, 22 Sep 2023 05:18 PM (IST)
- Source:REUTERS
Amazon Prime Video, one of the industry's leading streaming services, has made an important move that will affect its consumers beginning early next year. Users will begin to see adverts on their favourite series and films unless they choose a new ad-free membership tier, which will be offered at a greater fee.
Amazon's move follows similar actions taken by rivals like Netflix and Walt Disney as the streaming industry suffers from a decline in new sign-ups. Subscribers are spending less on entertainment and other luxuries as a result of high inflation and interest rates.
READ: After Netflix, Amazon May Introduce Ad Based Subscription For Prime Video, Says Report
Early in 2024, Amazon plans to introduce ads on its platform in the US, the UK, Germany, and Canada. Next year, advertisements will be launched in France, Italy, Spain, Mexico, and Australia.
As an alternative for individuals who prefer an ad-free experience, Amazon will provide an ad-free membership tier for an extra $2.99 per month, only for US Prime members. Currently, a Prime membership in the US costs $14.99 per month or $139 annually. Pricing for additional nations will be revealed later.
According to Amazon's announcement, even for users who have chosen the ad-free plan, live event programming, such as sports, will continue to have advertising, according to a report by Reuters.
It seems that all the video streaming services are shifting to ad-supported platforms in order to maintain their revenue and not get hard on the customer’s pocket at the same time. Netflix and Walt Disney have already implemented the same strategy.
Not only that, Netflix has been working on the gaming segment as well in order to attract more consumers. Back in November, the platform has already introduced games on the application and has already tied up with popular franchises such as Stranger Things and other services like Reigns: Three Kingdom.
