Amazon Prime Video to Increase Prices, Possibly Introduce Ads; However, This Won’t Affect the Czech Market Yet

Introduction to Prime Video Ad-Supported Model

Updated on December 28, 2023 | The ad-supported Prime Video library is on the horizon. The company has already contacted American users via email that ads will be introduced to existing tariffs on January 29, 2024. Those who do not wish to see ads will have to pay an additional $3. ComputerBase is monitoring the situation in neighboring Germany, where the surcharge will also be 3 euros. The higher tariff will be available from February 5, 2024.

Uncertainty About Prime Video Ads in the Czech Republic

As of now, we have no information on whether or when the ad-supported option will reach the Czech Republic. Amazon has announced the feature for only nine countries so far. However, since the Czech-based Prime subscription, which costs €8.99 per month, is dependent on the German branch, it is likely that Czech users will be subject to the same conditions as in Germany, despite accessing only a subset of the benefits available to German customers, let alone those in the USA.

Prime Video’s Current Subscription Model in the Czech Republic

Amazon does not heavily promote its Prime subscription in the Czech Republic, focusing mainly on Prime Video, which currently offers a single tariff of 79 CZK per month. This plan includes 1,100 titles, with more than half featuring some form of Czech localization.

Advertising Logistics and Local Relevance

However, Amazon will likely prioritize advertising in regions where it has established advertising partners. It would not make sense to show Czech users German ads for products that are not available in their country. Given the market size, it is probable that the Czech Republic will be among the last markets to receive the new ad-supported feature.

Prime Video Integrating Ads Into Streaming Services

Original article from September 22, 2023 | Prime Video is another major streaming service that will begin incorporating ads into movies and TV shows. Amazon announced that this would happen at the beginning of next year, with viewers having the option to pay extra for an ad-free subscription.

Ad Quantity Compared to Traditional TV

Amazon has not specified the number of ads, only mentioning that there will be fewer ads than in traditional television. Norms for streaming services usually include up to five minutes of advertising per hour of viewing.

Global Rollout and Subscription Surcharge

Advertising will initially be available in the USA, Canada, United Kingdom, and Germany, with later expansion into France, Italy, Spain, Mexico, and Australia. Details about other countries have not been disclosed, with expansion likely hinging on Amazon’s ability to engage advertising partners in each region.

The surcharge for the ad-free version will be an additional $3 per month. Currently, a standalone Prime Video subscription costs $9, while the complete Prime package, which includes free shipping from the e-shop, music and gaming services, and a host of other bonuses (available only partially in the Czech Republic), is $15 per month.

Varied Pricing Across Different Markets

Amazon will announce future surcharges for other markets at a later date. Its pricing strategy varies significantly by region. For example, the standalone Prime Video subscription is one of the cheapest in the Czech Republic, costing just 79 CZK per month. In comparison, Slovaks pay 6 euros (150 CZK), Poles 11 zloty (60 CZK), and Germans 7.50 euros (185 CZK)
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