Amazon Prime Video prepares for ad integration in 2024, will offer ad-free option for members

Amazon Prime, launched in 2005, recently celebrated its 18th anniversary. The membership program started with the offering of free Two-Day Shipping on one million items, which fundamentally changed the way people shopped online. Since then, Amazon has continually invested in its fulfilment and transportation networks, logistics, supply chain, and software to expand selection and delivery speed for customers.

Amazon Prime has undergone significant evolution. It now offers free Prime shipping on over 300 million items, with tens of millions of popular products available for free same-day or one-day delivery. During the last quarter, Amazon achieved its swiftest Prime delivery times to date. In the top 60 largest U.S. metropolitan areas, over half of Prime member orders arrived within the same day or the following day. In the first half of the year, Amazon managed to deliver over 1.8 billion units to U.S. Prime members on the same day or the next.

In addition to expedited shipping, Amazon Prime offers a range of benefits, including savings, convenience, and entertainment bundled into one membership. Prime members enjoy exclusive deals and shopping events like Prime Day, access to a wide array of content such as movies, TV shows, music, and podcasts, as well as photo storage, gaming perks, access to books and magazines, and savings on prescriptions and groceries.

Amazon has been heavily investing in Prime Video as a key benefit, offering an extensive library of movies and series, including Amazon Originals and live sports coverage. Notably, Amazon MGM Studios garnered an impressive 68 Primetime Emmy Award nominations this year, making it the studio's most successful year to date.

In a move to bolster content investments, Amazon Prime Video will commence the inclusion of a limited number of advertisements in early 2024. Amazon's goal is to maintain a notably lower volume of ads compared to traditional linear TV and other streaming TV providers. This introduction of ads within Prime Video will initiate in the U.S., U.K., Germany, and Canada early next year, with further expansion into France, Italy, Spain, Mexico, and Australia later in the year. Additionally, U.S. Prime members will have the option to opt for an ad-free plan, available for an additional $2.99 per month.

Amazon Prime offers an extensive array of benefits, encompassing fast and free delivery, access to exclusive streaming content, exclusive shopping events, ad-free music, prescription savings, grocery delivery, gaming benefits, and more, rendering it a compelling value proposition. Amazon continues to enhance the program by adding new benefits and features over time.