(Web Desk) - Amazon Prime Video, a prominent player in the streaming service industry, has decided to introduce commercials on its platform in Canada from February 5, 2024.
The decision, marking a pivotal shift in the company’s strategy, is expected to impact both the viewer experience and the competitive dynamics of the streaming industry in the country.
Up until now, Canadian subscribers have relished an ad-free viewing experience on Amazon Prime Video, included as part of their subscription.
The forthcoming addition of commercials to the platform signals a significant change in the streaming service’s model. Amazon Prime Video aims to have ‘meaningfully fewer ads than linear TV and other streaming providers,’ ensuring that the viewer experience remains at the heart of its operations.
The company has offered an option for subscribers to opt out of commercials by paying an additional $2.99 per month, a move that echoes the strategies of other streaming platforms like Disney+ and Netflix.
The introduction of advertisements on Amazon Prime Video is a response to the pressing need for new revenue streams, as subscription prices are on the rise across almost all major streaming platforms.
The company has justified this move as a necessity to keep investing in compelling content, thereby ensuring a balanced trade-off for subscribers.
The ad-supported model is set to be expanded to the U.S., U.K., and Germany from January 29, 2024, before its debut in Canada.
The changes in Amazon Prime Video’s model could have broader implications for the streaming industry in Canada.
The introduction of ad-supported tiers is seen as a response to consumer complaints about high streaming costs, an attempt to reduce subscriber cancellations and ensure customer retention.
The move could prompt other platforms to consider similar strategies or counteract by emphasizing their ad-free viewing options, thereby reshaping the competitive landscape of streaming services in the country.