When did Amazon Prime Start Ads? Why does Prime Video Have Ads?
by Kavitha
Updated Jan 30, 2024
Amazon Prime
Amazon Prime Video, commonly known as Prime Video, is an American subscription-based video streaming and rental service offered by Amazon. Operating globally, it serves as a standalone service or part of the broader Amazon Prime subscription. Launched on September 7, 2006, as Amazon Unbox in the United States, it evolved over the years, integrating with the Prime subscription and undergoing various name changes, ultimately becoming Prime Video.
The platform primarily distributes films and TV series produced by Amazon MGM Studios, along with licensed content as Amazon Originals. It caters to a diverse audience with offerings like live sporting events, video rental, and purchasing services. Access to Prime Video may require a full Prime subscription in some countries, while others can access it independently.
In addition to its core content, Prime Video offers a service known as Amazon Channels, allowing users to subscribe to additional video subscription services within the platform. With an extensive library and global reach, Prime Video has gained popularity, boasting over 200 million users as of September 2022. It has played a significant role in the evolution of online streaming, offering entertainment through a user-friendly interface and a variety of content options for viewers worldwide.
When did Amazon Prime Start Ads?
Amazon Prime Video introduced ads on January 29, 2024. Previously ad-free, the streaming service started rolling out advertisements to its subscribers in the US, UK, Germany, and Canada. To avoid the newly introduced ads, viewers have the option to pay an additional $2.99 per month on top of their existing subscription.
This change comes in the wake of similar moves by competitors like Netflix, Hulu, Disney+, and others who had implemented price hikes in 2023. The pricing structure of Amazon Prime Video includes an $8.99 per month standalone option or as part of the broader Amazon Prime membership, which costs $14.99 per month or $139 annually.
Amazon anticipates that its Prime Video ads will reach more than 115 million people in the US each month. Interestingly, while implementing this price increase for Prime Video, the company has also announced layoffs affecting "several hundred" employees in its Prime Video and Amazon MGM Studios divisions, indicating a simultaneous focus on managing labor costs.
Why does Prime Video Have Ads?
Amazon Prime Video introduced ads to increase revenue and profit from subscribers. In the ever-evolving landscape of streaming services, commercials have become a key strategy for generating additional income. Following the trend set by competitors like Netflix, Amazon has made watching ads the default for its service, pushing subscribers to opt for a pricier, ad-free version.
The move has sparked frustration among viewers, who now must pay extra or endure interruptions during their favorite shows. As streaming platforms navigate financial challenges, ads have emerged as a way to offset costs, making them an increasingly common aspect of the streaming experience.
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When did Amazon Prime Start Ads - FAQs
Amazon Prime Video started showing ads on January 29, 2024.
Amazon introduced ads to increase revenue and profit from subscribers, aligning with industry trends in streaming services.
Viewers can avoid ads by paying an additional $2.99 per month on top of their existing subscription.
Amazon Prime Video offers an $8.99 per month standalone option or is included in the broader Amazon Prime membership, which costs $14.99 per month or $139 annually.
The introduction of ads has sparked frustration among users, who now have to pay extra or endure interruptions during their favorite shows to access an ad-free version.