Amazon Prime Video unveils ad-free option at extra $2.99 monthly fee from late January
Amazon Prime Video is set to introduce a new ad-free subscription tier, requiring an additional $2.99 per month. This add-on expense will be on top of the existing $139 annual cost for an Amazon Prime subscription or the $8.99 monthly charge for standalone Amazon Prime Video access. Viewers declining this extra fee will begin encountering commercials within Prime Video content starting January 29.
Amazon initially hinted at the possibility of incorporating ads into Prime Video back in September. However, the company assured a reduced ad frequency compared to traditional TV and other streaming platforms. A comparative pricing rundown post this alteration unveils:
- 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+ Ad-Free: $13.99 per month
- Hulu Ad-Free: $17.99 per month
- NBCUniversal's Peacock: $11.99 per month
- HBO Max: $15.99 per month
The move by Amazon to incorporate ads into its video service reflects the increasing prominence of advertising within the company's revenue model. Recent financial reports highlight that advertising constitutes more than 8% of Amazon's total net sales, surpassing income derived from subscription services.
Despite this, Amazon continues to grapple with net losses stemming from video content licensing and distribution. This mirrors the broader industry struggle to devise a sustainable financial framework for streaming platforms, a predicament often leading to frequent price adjustments across the streaming landscape.
