Amazon.com said it will introduce limited advertisements to its Prime Video streaming service in the US, UK, Germany and Canada early next year as it seeks to increase investment in content.
Prime will also include an ad-free option for an additional US$2.99/month in the US, while pricing in other countries will be published later, the company said in a statement on Friday.
The introduction of advertising comes as the world’s largest online retailer is engaged in a companywide cost-cutting programme. Competition among streaming providers has also intensified, leading to price hikes as well as the introduction of free or ad-supported tiers to win or keep customers.
Ads will appear in other markets, including France, Italy, Spain, Mexico, and Australia, later in the year, Amazon said. Amazon Prime costs $139 annually or $15/month. — Jake Rudnitsky, (c) 2023 Bloomberg LP