Subscribers to Amazon's Prime Video streaming service will start seeing commercials in films and TV shows from early next year unless they pay an extra £2.99 for an ad-free experience.
The company said customers in the UK and Germany will start seeing “limited ads” in its streaming content after February 5. Prime Video users in the US will start seeing ads starting January 29.
Rivals Netflix and Disney have already offered cheaper ad-supported streaming packages in a bid to win over cost-conscious consumers concerned about rising household bills. However, Amazon's level of advertising is not cheaper and customers will instead have to pay more to watch without it.
Big broadcasters have adjusted their business models after the post-pandemic slowdown in subscriber growth, seeking to turn loss-making services profitable by offering higher advertising tiers, raising prices and cutting content spending.
In an email to Prime Video members, Amazon said the move will allow the company to “continue investing in compelling content and continue to increase investment over an extended period of time.”
Amazon said it would not inundate viewers with messages, saying it would contain “significantly fewer ads than ad-supported TV channels and other streaming TV providers.”
The company revealed earlier this year that it plans to pursue its competitors and run ads in countries including the UK, US, Germany and Canada.
An Amazon Prime subscription, which includes access to music and video streaming services and perks including free and fast delivery of packages, costs £8.99 per month in the UK. The company said it will not change the price of the service next year, unless customers choose to pay the extra for the no-ads option.
Netflix, which began rolling out its ad tier in late 2022, said it has about 15 million customers globally who have signed up now. The streaming company charges £4.99 a month for the basic tier, which is significantly less than the standard ad-free package of £10.99.
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Disney+ charges £4.99 a month for its service with ads, which launched in the UK in August, or £7.99 for the standard ad-free package.
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