Starting in early 2024, Amazon Prime Video will follow an ad-supported streaming model. Prime members who don’t want to see advertisements must pay an extra $3 each month. It’s a disappointing change of pace—after all, Prime memberships cost $139 annually. But this heel-turn comes as no surprise. Most major streaming services, including Netflix, Max, and Disney+, now charge extra for an ad-free experience. (However, Amazon promises that it won’t increase the price of Prime in 2024.)
Advertisements will invade the Prime Video platform at a measured pace. Amazon says that it wants to have “meaningfully fewer ads” than the competition, but this is kind of meaningless, as every streaming service promises to have fewer ads than their competitors. This should be a smooth transition, even if it’s a bit frustrating.
Interestingly, there aren’t any major differences between ad-supported and ad-free Prime Video (aside from the ads, of course). Ad-supported viewers can access the full Prime Video library with 4K HDR video quality. Those who pay for ad-free Prime Video won’t get any additional perks, which is unusual but refreshing. Rival services like Netflix force their ad-supported customers to endure lower-quality video and other restrictions. (We spoke with Amazon on this particular point.)
Note that Amazon has spent the last few years picking up sports programming like “Thursday Night Football.” Sports licensing is notoriously expensive, and it may be partially responsible for the rise of AVOD streaming tiers. We may see other changes and disruptions as sports franchises continue their migration away from cable.
Prime members will receive an email explaining this change in late 2023 or early 2024. The email will also tell customers how to join ad-free Prime Video, a $3 monthly add-on. Ad-supported Prime Video will roll out in the United States, United Kingdom, Germany, and Canada in early 2024. Users in France, Italy, Spain, Mexico, and Australia will begin to see ads a few months later. If you can tolerate ads, then you don’t need to do anything to your account. Amazon will automatically register you as an ad-supported viewer when the time comes. This will not affect your monthly bill.
Source: Amazon via The Hollywood Reporter
