Amazon Prime Video is reportedly planning to introduce advertisements for viewers in India starting next year. According to a report by Bloomberg, this move mirrors a change which the company has already implemented in the US. The report claims that Prime Video subscribers in Indian can expect to see ads interrupting their shows and movies as Amazon seeks to offset the costs of producing and acquiring content.With this move, the company is reportedly aiming to generate more revenue to drive content investments in the rapidly expanding and competitive streaming market.
What the company said
In a latest statement, Amazon noted that Prime Video aims to have “meaningfully fewer” advertisements than other streaming providers and TV channels, while increasing “investments over a long period of time” on its titles.
The company also pointed out that there will be an ad-free option as well. However, the pricing for the same will be shared later by Amazon.
However, the company has reportedly confirmed that no changes will be made to Prime Video’s current price in Indian in 2024. It currently offers subscriptions for Rs 799 per year. This means users have two more months to renew their Prime Video subscription before Amazon increases the price of the plans.
Why Amazon is planning this move
This move comes as Reliance and Disney has finalised a mega-merger that will control nearly half of India’s streaming users, intensifying the battle for subscribers. Despite cutting back in other markets, Amazon continues to invest heavily in India, where Prime membership sign-ups have outpaced the rest of the world.
The introduction of ads, which are projected to generate $5 billion in revenue this year in the US, will provide additional funding for content acquisition and production in the price-sensitive Indian market, where competitors like JioCinema offer subscriptions for as low as a penny per day.