Amazon to show ads in Prime Video movies and shows starting January 29, 2024

Prime Video Starting To Air Ads

Amazon has announced that starting January 29, it will begin airing ads in its Prime Video television shows and movies. This means that Prime Video subscribers, who pay $139 per year or $8.99 per month, will see “limited” ad interruptions. If subscribers want to avoid these ads, they can pay an extra $2.99 per month for a commercial-free subscription. This new subscription strategy comes at a time when streaming platforms are moving towards a tiered subscription model, offering both ad-supported and ad-free options.

Amazon stated that this move will allow the company to continue investing in compelling content and increase that investment over a long period of time. The streaming giant also aims to have significantly fewer ads than linear TV and other streaming providers. The company, which first announced the ad-free tier in September, did not immediately comment on the recent news.

Streaming platforms are embracing tiered subscription models to increase revenue as they invest heavily in costly content during the streaming wars. The tiered model increases sales by bringing in ad dollars and encouraging some subscribers to pay for higher-tier subscriptions. Amazon’s advertising business, which includes Amazon marketplace advertisements and Freevee, has been a significant revenue source for the tech giant. In the third quarter, Amazon’s advertising revenue was approximately $12 billion, a 26% increase from the same quarter last year.