Amazon Prime set to show ads earlier next year!

Amazon Prime set to show ads earlier next year!

Amazon Prime Video, one of the leading streaming platforms, has announced its plans to introduce advertising on its platform starting early next year. This move marks a significant shift for the service, as it has traditionally been ad-free. Incorporating ads is a strategic move to diversify revenue streams and compete with other streaming giants like Netflix and Hulu.

The introduction of ads on Amazon Prime Video will provide advertisers with a new avenue to reach the platform’s vast user base. With over 200 million subscribers worldwide, Amazon Prime Video offers advertisers a highly engaged audience for their promotional content. The ads will display before and during streaming content, mirroring the ad-supported models employed by other streaming platforms.

In May, Amazon introduced a new free and ad-supported (FAST) video experience for Fire TV devices in the U.S. During the same month, the company announced its plans to add 100+ Amazon Originals to its Freevee streaming service. The company rolled out a new Fire TV Channels app in August, granting access to over 400 FAST channels.

Over the past few years, Amazon has raised the prices of several of its offerings. In February 2022, the annual Prime membership increased from $119 to $139. The company also implemented price hikes for Amazon Music Unlimited plans this year. This includes those for individuals, Prime Members, and families.

Platforms must seek out new revenue sources to sustain their growth. Additionally, they’ll need to maintain the delivery of high-quality content to their subscribers. While this decision may encounter initial user resistance, Amazon intends to balance ads and user experience by offering personalized and unobtrusive advertising.

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