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CIO Bulletin
,
28 December, 2023
Author:
CIO Bulletin Team
Amazon plans to start advertising in Prime Video films and TV series on January 29, ensuring limited commercial interruptions for annual Prime subscribers who pay $139.
On January 29, Amazon will start running advertisements in its Prime Video films and television series.
This implies that beginning on that day, Prime Video subscribers — who pay $139 for an annual Prime membership — will have "limited" commercial interruptions, according to a statement released by Amazon on Tuesday. Beginning on January 29, users who pay the $8.99 monthly fee for the stand-alone Prime Video membership will also view advertisements.
But according to Amazon, customers can choose to forgo the advertisements by adding $2.99 a month for a commercial-free subscription.
The industry is moving toward a tiered subscription model, which coincides with Prime Video's new subscription approach. Disney+, Netflix, Hulu, and Peacock are just a few of the streaming services that have already added ad-supported subscription alternatives to their more expensive ad-free options.
Amazon first revealed the ad-free tier in September. Tiered subscription structures are being adopted by streaming services to boost income by attracting ad revenue and encouraging customers to pay more for higher-tier memberships.
One of Amazon's main sources of income has been its advertising division, which includes Freevee and ads on the Amazon marketplace. According to the company's financial statement, the tech giant made around $12 billion in revenue from advertising in the third quarter, a 26% increase over the same period the previous year.







