Amazon plans to run limited ads on Prime Video in the US, the UK, Germany, and Canada starting in early 2024, charging $2.99/month extra in the US to avoid ads
Bloomberg
Context & Ripple Effects
This formalizes a direction signaled by reports that Amazon was considering an ad-supported Prime Video offering and discussions around ad-based Channel tiers: the earlier ad-tier and Channels discussions suggested advertising would become part of Prime Video's bundle economics.
The rollout turns ad-free viewing into a separately priced benefit rather than a default inclusion. Later coverage tracks the operational follow-through, including the scheduled January start for Prime Video ads.
First-order effects
Prime Video viewers in the named markets will receive limited advertising by default, while US viewers who want to avoid it face a $2.99 monthly add-on.
Amazon gains a new advertising surface and a direct incremental charge tied to ad-free viewing within its existing Prime offering.
Second-order effects
The move creates a clearer trade-off between audience reach and subscription revenue: advertisers gain access to Prime Video inventory, while Amazon can measure how many viewers pay to remove ads.
It also increases pressure on other streaming bundles to decide whether ad-free access remains included or becomes a separately monetized upgrade, a form of the later increase in Prime Video ad load indicates Amazon could continue to tune.
Third-order effects
If viewers broadly accept the default, streaming bundles may increasingly treat advertising and ad-free access as separate revenue layers rather than mutually exclusive plans.
The durable question becomes bundle cannibalization: providers must add ad revenue and paid upgrades without making the base membership materially less valuable.
The trend: Streaming services are shifting from subscription-only economics toward hybrid bundles that monetize both viewer attention and the option to avoid ads.
Watching streaming shows without ads was a zero interest rate phenomenon.
@trevorcroker
Trevor Croker on threads
Apple TV+ is now the only major streamer that doesn't have an ad-tier. https://www.bloomberg.com/...
@loudmouthjulia
Julia Alexander on x
On the one hand, Amazon adding ads to Prime Video is another “streamer goes dual revenue” story. Also: Amazon's advertising business grew by more than 20% quarterly. It brought in nearly $40B last year. It's also hyper targeted. And it owns the supply and distribution sides.
@loudmouthjulia
Julia Alexander on x
Amazon is the ultimate ecosystem; Google is the ultimate utility. Both have the most impressive targeting advertising capabilities for companies who want to be in and monopolize video. YouTube and Twitch are also disrupting and monetizing the supply (creation) side of video.
@richontech
Rich DeMuro on x
BIG CHANGE for Amazon Prime Video in 2024: Unless you pay $3 a month, you'll start seeing ads so, Prime Video no longer really included in a Prime membership... https://www.aboutamazon.com/ ...
@karlbode
Karl Bode on x
the enshittification of streaming video continues with Amazon's decision to charge people who already pay $140 a year for Amazon Prime an additional $3 to avoid video ads. How very innovative: https://www.theverge.com/...
@jyarow
Jay Yarow on x
The more the disruptors act like incumbents, the more attractive the incumbents become. Cable TV is a better tech and interface than the app-based structure of Apple TV, Netflix, Prime, et al. Wonder if Cable can capitalize in any way to take back share.
@smtuffy
Sean Tuffy on x
Cable television, they're recreating cable television
@smtuffy
Sean Tuffy on x
More seriously, I'm not sure everyone has made peace with the fact that US television basically has to be ad supported or subs have to cost a fortune. Pick your poison
@sarthakgh
Sar Haribhakti on x
While the “new TV is same as old TV” meme is fun, it is not the same at all Just the sheer ability to easily sign up and cancel streaming services makes it a 10x better UX than cable The “IDK what service has the show I want to watch” problem is overstated. Just Google it!
r/Piracy
r on reddit
Amazon Prime Video content to start including ads next year
r/technology
r on reddit
Amazon Prime Video will soon come with ads, or a $2.99 monthly charge to dodge them
r/thegrandtour
r on reddit
Amazon Prime is getting ads
r/LOTR_on_Prime
r on reddit
Rings of Power Season 2 to have commercial breaks unless you pay an extra $2.99 per month to remove ads (on top of your Prime subscription). …
r/movies
r on reddit
Amazon Prime Video shows and movies will include limited advertisements starting in 2024 - New ad-free option available for an additional $2.99/m