Earlier this year, Amazon Prime Video announced its plans to introduce some advertisements to its content streaming service. Now, the platform has finalized the date of ad integration. Soon, Prime Video subscribers will start seeing ads while watching their favorite movie or web series through the OTT service.
The Ad Integration Remains Limited To the United States And A Couple of Other Regions
Amazon Prime Video informed subscribers in a recent email about the ad integration. The change will occur in regions like the United States, United Kingdom, Germany, and Canada. The email clarifies that limited ads will allow the platform to continue investing in compelling content. Ultimately, Prime Video wants to increase its revenue.
In the United States, a Prime subscription costs $14.99 per month or $139 per year. Separately, Prime Video costs $8.99 per month. These particular plans don’t include any ads at the moment. However, when it comes to Netflix’s Standard with ads plan, it costs $6.99 per month. The Standard plan without ads costs $15.49 per month. In comparison, a Prime Video subscription is already expensive.
The Ad Integration Will Boost The Platform’s Revenue
When it comes to a streaming service like Prime Video, there are two sure ways to boost the overall revenue. A platform can either increase the subscription charges or retain the prices and integrate advertisements to earn more from brands. Amazon has decided to opt for the second method as it has confirmed that the current membership price remains unchanged.
Users Can Continue Watching Without Ads For An Additional $2.99 Per Month
The email also contains a link allowing users to register for an ad-free experience by paying another $2.99 monthly. Although Amazon asserts that it will show fewer ads than linear TV and other streaming TV providers, the platform hasn’t yet revealed the exact amount/duration of ads. Nonetheless, Prime Video’s decision to include promotions aligns with what other popular apps such as Netflix and Disney+ are doing.
Will These Changes Come To India?
For the time being, the changes don’t apply to India. However, in the long run, the streaming service wants to extend the ad integration to all markets. Currently, there are two Amazon Prime membership tiers available in India. The regular Prime membership offers shopping benefits and video/audio streaming for Rs. 299 a month or Rs. 1,499 a year. On the other hand, the Amazon Prime Lite membership offers just the shopping benefits at Rs. 799 a year.