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Amazon Prime Video Introduces Ads, Sparks Controversy Among Subscribers

Move Expected to Generate Billions in Revenue Despite Backlash

Amazon's Prime Video streaming app on an iPad is seen in Baltimore on March 19, 2018. Amazon says that it will now start charging $2.99 per month in order for users in the U.S. to watch Prime Video ad free. (AP Photo/Patrick Semansky, File)
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Overview

  • Amazon Prime Video has introduced ads to its streaming service, with viewers now required to pay an extra $2.99 per month for an ad-free experience.
  • The move is expected to generate billions in additional revenue for Amazon, with estimates ranging from $1.3 billion to $6 billion by 2024.
  • The introduction of ads has been met with backlash from some subscribers, with reports of cancellations due to the change.
  • Amazon's decision to make the ad-supported tier the default option differs from competitors like Netflix, which introduced a cheaper ad-supported tier for subscribers to opt into.
  • Despite the controversy, industry analysts predict that Amazon's entry into the ad-supported streaming market will be a disruptive force, potentially leading to downward pressure on pricing.