Amazon to Introduce Limited Advertisements on Prime Video

Amazon.com Inc. announced on Friday that its Prime Video service will soon feature "limited advertisements" starting in early 2024. In addition, the company plans to launch a new ad-free version of the service for an additional $2.99 per month in the U.S. This move by Amazon aims to sustain its investments in compelling content and ensure long-term growth.

The decision to introduce ads on Prime Video follows similar actions taken by competing streaming platforms, as investors increasingly emphasize the need for improved profitability. Current Prime members do not need to take any action at this time, as there will be no changes to the current price of Prime membership in 2024.

The introduction of advertisements will initially occur in the U.S., U.K., Germany, and Canada early next year, with France, Italy, Spain, Mexico, and Australia following suit later in 2024. Amazon aims to minimize the number of ads compared to its rivals. However, it is worth noting that live content, such as sports, will continue to include advertising.

After the announcement, Amazon's stock remained relatively stable in after-hours trading on Friday.