Amazon Prime Video viewers looking to avoid ads during shows and movies will have to pay $2.99 more per month starting in late January.
The ad-free tier will officially roll out on January 29 and will be added to the $139 annual cost of an Amazon Prime subscription, or the standalone Amazon Prime Video subscription of $8.99 per month.
This means that users who choose not to pay the extra fee to go ad-free will start seeing ads on Prime Video content from the same date.
Amazon previously announced plans to run ads on Prime Video in September, while saying it hoped to run “significantly fewer ads than linear TV and other streaming TV providers.”
Here’s how different streaming services will compare once Amazon’s new fees take effect:
- Amazon Prime Video ad-free (standalone): $10.99 per month
- Amazon Prime Video ad-free (with Prime subscription): $16.99 per month
- Netflix standard: $15.49 per month
- Disney+ without advertising: $13.99 per month
- Hulu without ads: $17.99 per month
- NBCUniversal Peacock: $11.99 per month
- Maximum: $15.99 per month
Advertising has taken a growing share of Amazon’s business and now accounts for more than 8% of the company’s total net revenue, according to the company’s financial statements. Advertising revenue exceeded revenue from subscription services in 2022, according to filings.
Meanwhile, Amazon reported that it continues to experience net losses related to licensing and distribution of video content. These losses are emblematic of the industry-wide struggle to find a viable financial model for streaming and are a key reason why many streaming platforms have raised their prices.
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