Sept 22 (Reuters) – Amazon Prime Video users will see ads on shows and movies from early next year unless they subscribe for an ad-free tier that would be at a higher cost, the tech giant said on Friday.
Amazon’s move follows similar roll-outs by rivals Netflix and Walt Disney .
The streaming industry has been facing a slowdown in new sign-ups as subscribers struggling with high inflation and interest rates dial back entertainment spending and other discretionary expenses.
The U.S. tech giant said the advertisements will be introduced in the United States, the UK, Germany and Canada in early 2024, followed by France, Italy, Spain, Mexico and Australia later in the year.
Amazon will roll out an ad-free subscription tier for an additional $2.99 per month for U.S. Prime members. Prime subscription in the U.S. currently costs $14.99 per month or $139 per year.
The company added it would share pricing for other countries at a later date.
Live event content such as sports will continue to include advertising even if the subscriber has paid for the ad-free plan, Amazon said.
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