Amazon prime videos to include ads in 2024
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Viewers in the United Kingdom, the United States, Germany, and Canada will see advertisements beginning early next year unless they pay a fee to subscribe to an "ad-free" alternative for an extra $2.99 a month.
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The Amazon Prime Video logo is displayed in a Jeep Grand Wagoneer on Jan. 7, 2023 (AFP)
Amazon is planning on following suit after competitors Netflix and Disney+ by adding advertisements to its Prime Video streaming service in 2024.
Amazon stated that the "very compelling value," will be to "continue investing in compelling content and keep increasing that investment over a long period of time, starting in 2024, Prime Video shows and movies will include limited advertisements in the UK."
Viewers in the United Kingdom, the United States, Germany, and Canada will see advertisements beginning early next year unless they pay a fee to subscribe to an "ad-free" alternative for an extra $2.99 a month.
Read more: Amazon sued after millions were lured into enrolling in Prime
France, Italy, Spain, Mexico, and Australia, will see ads later in the year, for a price to be announced.
Customers have vocalized their disappointment with such announcements, particularly when Netflix announced ads since it already tightened its enforcement of customers who share passwords with persons other than their immediate family.
Many individuals, according to Midia Research analyst Hanna Kahlert, dislike the concept of advertisements for a service they've already paid for unless it renders the subscription price cheaper.
However, due to the streaming being only one part of the Prime package, she believes Amazon has the authority to make the move without fear of a backlash.
She noted that with or without ads, "Amazon still wins on convenience, with its content arguably a bonus."
Friday's Amazon announcement explained the company would aim "to have meaningfully fewer ads than linear TV and other streaming TV providers."
Analyst data revealed by Kantar shows customers cut back on video streaming services in droves last year as they sought alternative methods to deal with the rise in living costs.
The number of paid-for video streaming subscriptions in the UK declined by two million, from 30.5 million to 28.5 million, according to the numbers.
Insider Intelligence senior analyst Max Willens stated that ad-supported tiers have become the norm in the streaming market, paving the way for Amazon's decision.
He explained that "It is slightly unusual for Amazon, which relentlessly positions itself as a customer-first company, to degrade a service it offers those customers, especially a service whose price has risen 75% since it was first introduced, but this feels unsurprising."
