Amazon Prime Video has announced a forthcoming change that will impact subscribers’ viewing experience. Starting in early 2024, the streaming service will introduce advertisements to its library of shows and movies in the US, UK, Germany, and Canada. This shift will extend to France, Italy, Spain, Mexico, and Australia later the same year.
To accommodate this transition, Amazon Prime Video is also offering an ad-free subscription option for an additional $2.99 per month, the company revealed in a statement. Subscribers will receive an email in the weeks leading up to the introduction of ads, providing information on how to switch to the ad-free tier.
The decision to introduce ads comes as the streaming market faces profitability challenges after years of relatively low subscription prices. Consumers should be prepared for potential price adjustments on their favorite streaming services.
Gunnar Wiedenfels, CFO of Warner Bros. Discovery, highlighted the need for corrections in the streaming industry’s pricing strategy, stating, “For a decade in streaming, an enormously valuable amount of quality content has been given away well below fair-market value.”
Currently, a standalone Prime Video subscription costs $8.99 per month. The $2.99 increase aligns with recent price hikes by other services, such as Peacock and Paramount+, both of which raised their ad-free subscription prices by $2, from $9.99 to $11.99, in July.
Mark Schilsky, a sales specialist at Bernstein Research, emphasized the cumulative effect of streaming cost increases. He noted that when combining subscriptions to Disney+, Hulu, Netflix, Max, Peacock, Paramount+, and Apple TV+, the monthly cost rose from $76.43 to $94.43 in the past year.
It’s important to note that the era of cheap, ad-free streaming is evolving, but alternative options remain for viewers willing to endure occasional interruptions. By assembling a bundle of top services like Netflix, Hulu/Disney+, and Max, it is still possible to enjoy a diverse streaming experience for just under $50 per month.