Amazon is expected to start rolling out ads on its Prime Video streaming service in the US on Monday, which could disrupt the media industry and increase costs for its customers. Crypto users who pay for their subscriptions via third-party platforms may also face higher charges.
Amazon, the world’s largest online retailer, is all set to venture into the advertisement revenue trend. The company is expected to start rolling out ads on its Prime Video streaming service, which offers a variety of movies, TV shows, and original content.
According to a report from Yahoo Finance, the launch of ads on Prime Video is anticipated to begin on Monday in the US.
However, Wall Street is certain that Amazon will significantly upset the evolving media industry with this launch, as it will compete with other ad-supported streaming platforms, such as Hulu, Peacock, and Paramount+.
Amazon Customers to Pay More for Ad-Free Streaming
Amid this move, Amazon’s customers will have to pay more to use their services. Customers of Prime Video will be automatically switched to the ad-supported tier at the current $14.99/month for Prime members and $8.99/month for non-Prime users. The ad-supported tier will show ads before and during content streaming, similar to other platforms.
The cost of the premium, ad-free edition will increase by $3 per month for those who choose to pay for it. The premium tier will offer uninterrupted content streaming and access to additional features, such as offline downloads and 4K resolution.
There are around 96 million Prime households in the US on Amazon. By 2025, there will be 176.2 million Amazon Prime subscribers in the US, according to eMarketer projections.
Crypto Users May Face Higher Charges via Third-Party Platforms
As of now, Amazon does not directly take Bitcoin or other cryptocurrencies as payment methods. But many customers use third-party routes, such as Purse.io, Crypto.com, etc., to pay for their subscriptions. These platforms allow users to buy Amazon gift cards or vouchers with crypto and then use them to pay for their Prime Video plans.
With an increase in the tariffs, those who are paying via crypto will also have to pay more. Based on this anticipation, the third-party platforms could see additional crypto transactions from Amazon customers who will buy higher plans to keep the ads away.
The urge to have a seamless and disruption-free streaming experience could lead to people purchasing better plans in the future, resulting in more trading volumes for third-party providers.
