From early next year, customers in the UK, Germany, and the US will have the choice to pay extra for an ad-free service
Amazon’s Prime Video subscribers will encounter commercials in movies and TV shows from early next year unless they opt for an additional £2.99 for an ad-free experience. The company announced that customers in the UK and Germany would experience “limited advertisements” in their streaming content starting from 5 February. In the US, Prime Video users will begin seeing ads from 29 January.
Netflix and Disney, competitors of Amazon, have already rolled out more affordable ad-supported streaming packages in an effort to attract budget-conscious consumers concerned about rising household expenses. However, Amazon’s ad-supported tier is not less expensive, requiring customers to pay more for an ad-free viewing experience.
Major streaming companies have adapted their business models following the post-pandemic slowdown in subscriber growth. They aim to transition loss-making services into profitability by introducing ad-supported tiers, adjusting prices, and reducing expenditure on content.
In a communication to Prime Video subscribers, Amazon stated that this step would enable the company to “persistently invest in engaging content and maintain increasing investment over an extended period.”
Amazon assured that it would not inundate viewers with messages, emphasizing that it would feature “significantly fewer ads compared to ad-supported TV channels and other streaming TV providers.”
The company had previously announced its intention to follow the lead of its competitors by introducing advertising in various countries, including the UK, US, Germany, and Canada.
The Prime subscription from Amazon, encompassing its music and video streaming services, along with benefits like free and prompt package delivery, is priced at £8.99 per month in the UK. Amazon affirmed that there would be no alteration in the service’s price next year unless customers chose to pay the additional fee for the ad-free alternative.
Netflix, which initiated the introduction of its ad-supported tier in late 2022, has reported approximately 15 million global subscribers to this offering. The streaming service levies a monthly fee of £4.99 for the basic tier, a notable reduction compared to its £10.99 standard ad-free package.
Disney+ offers its service with ads at a monthly cost of £4.99, introduced in the UK in August. Alternatively, customers can opt for the standard ad-free package at a rate of £7.99 per month.
