In response to a slowdown in subscriber growth, Amazon Prime Video is set to make significant changes in 2024. The company plans to introduce advertisements and launch a premium ad-free tier at an additional cost.
Amazon Prime Video is slated to introduce ads in select markets, starting with the U.S., the UK, Germany, and Canada in early 2024. This strategic move will be followed by expansion into France, Italy, Spain, Mexico, and Australia later in the year.
Amazon Prime’s premium ad-free tier at a higher price
In addition to ads, Amazon is offering a higher-priced ad-free tier. In the U.S., this premium tier will cost an extra $2.99 per month, in addition to the current Prime subscription fee of $14.99 per month or $139 per year. Pricing details for other countries will be disclosed at a later date.
Amazon is committed to maintaining a balanced approach. While ads will be integrated into its streaming service, the company intends to provide a viewing experience with fewer ads compared to traditional TV and other streaming platforms. Importantly, there are no plans to increase prices for the existing Prime membership plan in 2024.
Positive financial performance and growth
Amazon’s decision to introduce ads and an ad-free tier follows two disappointing earnings reports. However, the company reported better-than-expected quarterly sales growth and profit in August, driven by improvements in its primary growth areas: e-commerce and cloud computing.
