Amazon announced it will introduce ads to its streaming service in 2024, requiring Prime members to pay an additional fee to access ad-free content. The service will cost $4.99 per month in the U.S., a 66% increase from the previous rate of $2.99, effective April 10. The company explained in a blog post that delivering ad-free streaming with premium features demands substantial investment, and the pricing model aligns with other major streaming platforms while giving customers flexibility in how they watch content. Amazon’s latest annual filing revealed that advertising revenue for 2025 grew by 22% year over year to $68.6 billion, positioning the company as the third-largest player in the digital ad market, behind Google and Meta. The shift to a paid ad-supported model for Prime Video reflects broader industry trends as streaming services seek to balance profitability with user experience. Analysts noted that the price hike could impact subscriber retention, particularly as competitors like Netflix and Disney+ have maintained ad-free tiers without additional costs. The decision to introduce ads follows years of criticism over the rising cost of Prime membership, which now includes access to multiple services such as Prime Video, Prime Music, and Prime Reading. While some users may opt for the cheaper ad-supported plan, others could cancel their subscriptions altogether, potentially affecting Amazon’s revenue streams. The company emphasized that the change aims to sustain the quality of its offerings while adapting to evolving market demands. The move also highlights the growing competition in the streaming sector, where ad-supported models are becoming increasingly common.#streaming_services #amazon #prime_members #prime_video #digital_ad_market
