Amazon Prime Video now has commercials
Amazon's Prime Video streaming service introduced ads to movies and television shows Monday and added a new ad-free tier for $2.99 a month.
Why it matters: The move follows recent subscription fee increases from Disney, Netflix, Max and Peacock.
The big picture: Most major streaming services have started to introduce ad tiers as a way of luring subscribers as the market becomes more saturated, Axios' Sara Fischer reports.
- An ad-supported tier will help Amazon bolster its ad business at a time when more dollars are shifting from linear television to streaming.
- Cheaper ad-supported plans also bring in more revenue per person, appeasing investors.
Yes, but: Amazon said it aims "to have meaningfully fewer ads" than the competition.
Zoom in: An Axios reporter saw two short ads before starting a movie and a TV show on Monday.
- An Alexa commercial played with both.
Amazon Prime membership cost 2024
Details: The traditional Prime membership is $14.99 per month or $139 per year if paid for annually.
- Amazon offers a discounted Prime Access membership for $6.99 a month for qualifying recipients of government assistance such as SNAP EBT and Medicaid.
- Prime Student is $7.49 monthly or $69 per year.
- There's also a standalone version of Prime Video for $8.99 a month.
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