Jan 29, 2024 - Business

Amazon Prime Video now has commercials

A television screen with Amazon Prime Video app open with a message that says movies and TV shows included with Prime now have limited ads with the option to upgrade to an ad-free tier.

The Amazon Prime Video app notes a change to the streaming service Jan. 29. Photo: Kelly Tyko/Axios

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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