Read at New York Post
Amazon has started displaying ads on its streaming service, Prime Video, for users in the U.S. and plans to expand to other countries. Users can now choose to pay a monthly fee of $2.99 for an ad-free experience instead of the default option with ads. This fee is in addition to the existing Prime membership fee.
Users watching Prime Video content in the U.S. began automatically having "limited" ads on Monday, roughly four months after the e-commerce giant first signaled its plans to do so.
Amazon's decision to introduce ads on Prime Video is driven by the need to generate more revenue and continue investing in content. Other streaming platforms like Netflix and Disney+ have also introduced ad-supported memberships. Netflix has seen success with its ad-supported tier, which it rolled out in certain countries in November 2022.
Amazon, like other companies with streaming platforms, cited its aim to keep investing in its content as the reason for it bringing ads. Companies have also used ads to drum up more revenue from streaming.