Amazon will start airing adverts in its Prime Video tv exhibits and flicks on January 29.
Which means Prime Video subscribers, who pay $139 per yr for a Prime membership, will see “restricted” advert interruptions beginning on that date, Amazon stated Tuesday in an announcement to clients. Individuals who pay for the stand-alone Prime Video subscription, which prices $8.99 monthly, may even see adverts beginning on January 29.
Nonetheless, Amazon stated subscribers can keep away from the adverts by paying an additional $2.99 monthly for an commercial-free subscription.
Prime Video’s new subscription technique comes amid an industry-wide shift towards a tiered subscription mannequin. Streaming platforms resembling Disney+, Netflix, Hulu and Peacock have already launched ad-supported subscription choices alongside extra pricey ad-free choices.
“This can permit us to proceed investing in compelling content material and maintain rising that funding over a protracted time frame,” Amazon stated within the e mail. “We purpose to have meaningfully fewer adverts than linear TV and different streaming TV suppliers.”
Amazon, which first introduced the ad-free tier in September, didn’t instantly reply to CBS MoneyWatch’s request for remark.
Streaming providers are embracing tiered subscription fashions to spice up income as they pour large quantities of cash into pricey content material amid the escalating streaming wars. The tiered mannequin boosts gross sales by bringing in each advert {dollars} and incentivizing some subscribers to shell out extra money for higher-tier subscriptions, in keeping with the U.S. Chamber of Commerce.
Amazon’s promoting enterprise, which incorporates Amazon market ads and Freevee, has served as a significant income supply for the corporate. Within the third quarter, the tech large raked in roughly $12 billion in income from promoting, up 26% from the identical quarter final yr, the corporate’s monetary assertion exhibits.
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