From early next year, UK, Germany, and US customers can opt to pay extra for an ad-free service.
Starting early next year, subscribers to Amazon’s Prime Video streaming service will encounter advertisements in films and TV shows unless they opt for an ad-free experience by paying an additional £2.99. The company has announced that customers in the UK and Germany will experience “limited advertisements” in streaming content after February 5, while Prime Video users in the US will start seeing ads from January 29.
In an effort to attract cost-conscious consumers concerned about rising household expenses, competitors Netflix and Disney have already introduced more affordable ad-supported streaming packages. Unlike these rivals, Amazon’s ad-supported tier does not come at a lower cost; instead, customers will need to pay extra to enjoy an ad-free viewing experience.
Major streaming companies are adjusting their business models in response to the post-pandemic slowdown in subscriber growth. To transform loss-making services into profitable ones, they are implementing strategies such as introducing ad-supported tiers, raising prices, and reducing spending on content.
In an email sent to Prime Video members, Amazon explained that this decision would enable the company to “sustain investments in compelling content and consistently increase investment over an extended period.” Emphasizing a commitment to avoiding an overwhelming ad experience, Amazon assured users that the volume of ads would be “significantly fewer than those found on ad-supported TV channels and other streaming TV providers.”
Earlier this year, Amazon disclosed its intention to follow its competitors and introduce advertising in several countries, including the UK, US, Germany, and Canada. The current cost of Amazon’s Prime subscription, which encompasses access to its music and video streaming services, along with benefits like free and expedited package delivery, is £8.99 per month in the UK. Amazon stated that there are no plans to alter the subscription price in the upcoming year, unless customers choose to pay extra for the ad-free alternative.
In contrast, Netflix, which initiated the rollout of its ad-supported tier in late 2022, reports approximately 15 million global subscribers to this service. The basic tier from Netflix is priced at £4.99 per month, notably lower than the £10.99 monthly charge for its standard ad-free package.
Disney+ offers its service with ads at a monthly fee of £4.99, introduced in the UK in August, or alternatively, users can opt for the standard ad-free package priced at £7.99 per month.
