Amazon has announced that from 2024 it will insert commercial ads among the contents of its Prime Video streaming service. The change will initially roll out in the United States, Great Britain, Germany and Canada, with subsequent expansion to France, Italy, Spain, Mexico and Australia. For those who wish to continue with an ad-free experience, the company will offer an additional plan that will cost $2.99 on top of the standard $14.99 (in the US).
For now, the new policy is not expected to be implemented in Brazil. In the country, Amazon Prime membership remains at R$14.99, with no changes expected.
Impact on the streaming market
Amazon’s decision follows a growing trend in the streaming market, which has already seen giants like Netflix and Disney+ introduce ad-supported plans. Amazon justifies the change as a way to “continue investing in content and increase this investment over time.” The company had already taken its first steps in this direction by acquiring exclusive rights to broadcast the NFL football championship and launching free ad-supported platforms such as Freevee and Twitch.
The model combining subscription and advertising revenue is expected to become the new standard in the streaming industry. The move is seen as a response to profitability pressures, especially given the high cost of producing original content.
Source: Terra
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