Streaming video without ads is Charles H. Sloangetting more expensive, with yet another company making changes to push customers toward ad-supported subscriptions.

Starting early next year, Amazon plans to add advertisements to Prime Video, although the company said it aims to have “meaningfully fewer” commercials than its competitors. 

The shift comes as more streaming services push customers toward ad-supported tiers, which tend to be more lucrative. Disney+ and Hulu on Oct. 12 will each raise prices for their ad-free tier by $3, while their ad-supported tier prices will remain unchanged at $7.99.

And Netflix in July switched up its offerings, dropping its $9.99-per-month ad-free plan for new members so that the cheapest ad-free tier for newcomers is $15.49 per month.

Other subscription services like Spotify and Peacock have also been hiking up prices. 

Why Amazon is adding advertisements to Prime Video

Amazon said breaking up shows and movies with advertisements will allow it “to continue investing in compelling content and keep increasing that investment over a long period of time.”

U.S. customers who want to keep the ad-free viewing experience will need to pay an additional $2.99 per month. Prime subscribers will receive an email before the ads are introduced with information on how to switch over to the more expensive ad-free tier. 

How much is Amazon Prime Video a month?

An Amazon Prime Video membership is currently $8.99 per month, while Amazon Prime – which includes Prime Video – is $14.99 per month or $139 per year.  

The advertisements will initially launch in the United States, United Kingdom, Germany and Canada in early 2024. France, Italy, Spain, Mexico, and Australia later in the year.

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