Amazon announced on Friday its plan to introduce advertisements in the TV shows and movies on its Prime Video streaming platform. In early 2024, Prime Video subscribers in the US, UK, Germany, and Canada will no longer enjoy commercial-free programs. Viewers in France, Italy, Spain, Mexico, and Australia will experience ads infiltrating their content later in the year. Amazon aims to have fewer ads compared to linear TV and other streaming providers. The company assured that the price of a Prime Video membership will remain unchanged at $8.99 per month, or $14.99 per month when bundled with Amazon Prime. However, viewers who want ad-free streaming will need to pay an additional $2.99 per month.
Amazon will notify Prime members via email a few weeks before ads are introduced, providing information on how to sign up for the ad-free option. The introduction of Prime Video commercials comes as Amazon seeks to cut costs, as seen by previous job cuts. The company has faced challenges within its once-storied hardware division, with low morale among employees and concerns over the success of future projects. Additionally, Amazon has left several unopened stores, referred to as “zombie stores,” across the country. In response to rising costs, Amazon raised fees for Prime memberships in the US and Europe.
Amazon and Prime Video’s financial struggles are not unique, as other streaming platforms like Roku and Disney+ have also faced challenges. Roku recently laid off 360 employees and expects a restructuring charge of $45 million to $65 million. Disney+ implemented price hikes and is concerned about falling subscriber counts. Sources suggest Disney+ may fall short of its 2024 target due to price increases and declining demand in India.
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