Amazon Prime Video to Introduce Ads in Partnership with IPG Mediabrands
The move comes amid a slowdown in subscriber growth, with an ad-free tier available at an additional cost.
- Amazon Prime Video will introduce advertising across its content early next year, supported by a three-year partnership with IPG Mediabrands.
- Amazon's new ad tier comes after a reported slowdown in subscriber growth for its Prime service, which currently has 157.3 million subscribers in the U.S.
- An ad-free tier will be available for an additional $2.99 per month, with no plans to raise prices in 2024 for the current Prime membership plan.
- IPG Mediabrands will become the first media holding company to partner with Amazon Ads in supporting the new offering, initially rolling out in the U.S., U.K., Germany, and Canada, followed by other countries later in the year.
- Amazon aims to have fewer ads than linear TV and other streamers, offering advertisers reach, frequency, and opportunities to tailor their messages.