Ads are coming to Prime Video starting January 29

In a September announcement, Amazon had disclosed the impending arrival of ads for Prime Video’s entertainment content. The anticipation has now been met with a confirmed date. The company announced that the ads are coming to Prime Video streaming service, effective January 29, 2024. 

In an email addressed to Prime subscribers, Amazon states that starting on this date, Prime Video content will feature limited advertisements, a move aimed at bolstering investments in compelling content over an extended period. While the company assures viewers that they will experience fewer ads compared to traditional TV and other streaming services, the exact frequency remains undisclosed.

Initially, only Prime Video subscribers in the US, UK, Germany, and Canada will see ads during their streaming sessions. However, Amazon’s press release earlier this year hints at a broader rollout, with Spain, Australia, France, Mexico, and Italy expected to join the list later in 2024. 

The ad inclusion will not extend to content rented or purchased through the Prime Video store, preserving the ad-free experience for those transactions. Moreover, users with Prime Video Channel subscriptions need not worry about this change affecting their content.

For those averse to interruptions, Amazon introduces an opt-out option at an additional cost of $3 per month. This new Prime Video tier, not included in standard Prime subscriptions, provides an ad-free streaming experience. However, it’s noteworthy that even with the extra $3 monthly payment, ads will persist in Freevee, Amazon’s platform for live sports and other ad-supported content.

While a standard Amazon Prime subscription costs $139 annually or $15 monthly, opting for the ad-free experience will elevate the expense to $175 per year or $18 per month. Although this places the subscription in a higher price bracket, it remains a competitive option compared to Netflix’s Premium plan, priced at $23 per month. Additionally, an Amazon Prime subscription offers a plethora of benefits, including free one-day delivery, early access to Prime deals, access to Amazon Music, and more.

For those primarily interested in streaming, a standalone Prime Video subscription is available for $9 per month, with the caveat that ads will be integrated from January 2024. If the prospect of ads on Prime Video doesn’t align with your preferences and usage patterns, it might be worth considering canceling your Prime membership.

Amazon’s move reflects a broader industry trend, wherein streaming services are exploring diverse revenue models, including ad incorporation, to balance content production costs while maintaining competitive pricing. As the streaming landscape evolves, Amazon’s approach aims to offer subscribers a variety of options tailored to their preferences and viewing habits.

Over the past few years, Amazon has undertaken a significant advertising initiative, penetrating various avenues such as live sports and ad-supported platforms like Freevee and Twitch within the Prime Video ecosystem. Although the $38 billion generated from advertising in the previous year represents a modest fraction of Amazon’s overall annual revenue of $502 billion, the advertising sector is experiencing robust growth, consistently expanding at a rate exceeding 20% per quarter.