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Ads are coming AmazonPrime Video.
The company announced Friday that it would limit advertising for TV series and movies on its streaming service (part of the $14.99 monthly Prime subscription).
The ads on Prime Video, known for shows like “The Boys” and “The Marvelous Mrs. Maisel,” will roll out in the U.S. and other cities in early 2024, and in other countries later that year. I plan to If US customers do not want commercials, they must pay an additional $2.99 per month. In its announcement, the company said it will continue to run ads for this demographic at live events and sports.
Prime customers will receive an email with the option to sign up for ad-free inventory in the weeks prior to ad rollout.
“Prime Video shows and movies will include limited advertising as we continue to invest in engaging content and increase that investment over the long term, beginning in early 2024,” the company said in a statement. . post Friday.
Amazon said it plans to use “significantly less advertising than linear TV and other streaming providers.”
Prime Video will now join competing streaming services including: Netflix, warner bros discoverywith Max of disneyHulu and Disney+ rely on advertising. Ad-supported options not only provide consumers with a cheaper option as the list of streaming apps grows, but also provide an additional revenue stream.
Media companies in particular are trying a variety of ways to monetize their streaming businesses, from advertising to cracking down on password sharing to cutting costs.
Streaming giant Netflix reversed course late last year and began offering cheaper ad-supported plans. Netflix was slow to adopt advertising, but as subscriber growth slowed, the company introduced this option to increase revenue.
The company recently removed its cheapest ad-free plan in an effort to increase sign-ups for ad options. Company executives said the economics of the advertising plan were higher than the base plan and that advertising was contributing to Netflix’s revenue and profits.