It has been a busy week for Amazon (AMZN) -).
The $1.33 trillion e-retailer and cloud-service provider kicked things off with a bang by reportedly hiring Microsoft (MSFT) -) Product Chief Panos Panay. It then launched a slew of products at its Arlington, Va., devices event, including a new Fire TV soundbar, a new Echo Show 8 smart display, and the Eeero Max 7 router.
DON'T MISS: Amazon redesigned the Echo Show, launched its first-ever soundbar, and dropped a bevy of new tech today
Part of being one of the world's biggest companies involves putting in a lot of work to stay that way, though, and that can mean creating new revenue streams — even if customers aren't exactly thrilled about them.
Netflix (NFLX) -) learned this the hard way when it began quietly discussing the possibility of bringing an ad-supported tier to its subscription streaming service; the prospect was met with less than enthusiasm. The service has been rolled out (albeit slowly) in varying regions at lower price points for customers who are willing to break their binge streak in the name of cost-cutting.
For anyone who's curious or trying to save a few bucks, the plan is available in the U.S. for $6.99 a month and supports an "average of 4 to 5 minutes of ads per hour; a limited number of movies and TV shows won't be available due to licensing restrictions, which we’re working on; no ability to download titles," according to Netflix's official site.
Amazon tries a new revenue stream as streaming wars heat up
And now Amazon is toying with a similar move for its beloved Prime Video service.
"To continue investing in compelling content and keep increasing that investment over a long period of time, starting in early 2024, Prime Video shows and movies will include limited advertisements," Amazon's official site reads.
"We aim to have meaningfully fewer ads than linear TV and other streaming TV providers. Ads in Prime Video content will be introduced in the U.S., U.K., Germany, and Canada in early 2024, followed by France, Italy, Spain, Mexico, and Australia later in the year. No action is required for Prime members."
Amazon added that prices for Prime Video subscriptions will stay the same in 2024, however a "new" ad-free tier will be available to U.S. subscribers for an additional $2.99 a month. Prices for other countries will be disclosed later.
Amazon has been firmly standing up its streaming and live TV efforts. It has an exclusive deal to air "Thursday Night Football" on its Prime Video streaming service and features several other high-buzz series, including:
- "The Lord of the Rings: The Rings of Power"
- "The Boys"
- Tom Clancy’s "Jack Ryan"
- "Citadel"
- "The Wheel of Time"
- "Reacher"
- "The Summer I Turned Pretty"
- "The Terminal List"
Prime Video subscribers also have access to Prime Video Channels, which include apps like Max, Discovery+, Paramount+ with Showtime, BET+, MGM+, ViX+, PBS Kids, NBA League Pass, MLB.TV, and Starz. These, of course, all come at extra costs but are preloaded channels, as in a TV interface.
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