Ads on Amazon Prime Video will debut the next year.

Amazon (AMZN) said on Friday that Prime Video programs and movies would have restricted commercials beginning in 2024, as the firm aims to increase profitability and invest in the platform.

Ads in Prime Video series and movies will be available in the United States and numerous other countries beginning early next year. Existing members are not obliged to take any action, and Amazon said that consumers would be notified of the change many weeks in advance.

It’s a move that might boost Prime Video’s profitability, since the business aims to provide an ad-free streaming option for $2.99 per month, which is less than competitor platforms Netflix (NFLX), HBO Max, Disney+, and Paramount+. Standard ad-free Netflix subscriptions and Warner Bros. Discovery’s (WBD) HBO Max cost $15.49 and $15.99 per month, respectively.

Amazon has joined other streaming services in raising rates or discontinuing ad-free options in an attempt to increase income. In an attempt to attract more viewers to its ad-supported plan, Netflix dropped its basic $9.99-per-month ad-free option in the United States and the United Kingdom in July. That package, which costs $6.99 per month, is currently the lowest option offered to customers.

Disney (DIS), which controls Disney+ and Hulu, hiked fees on ad-free versions of both streaming services last month in a bid to increase profitability after losing millions of users in the most recent quarter. A commercial-free Disney+ membership will cost $13.99 per month beginning October 12, while the ad-supported option will remain at $7.99. Following the successful debut of Disney+ in the United States, an ad-supported option will be released in Europe and Canada on November 1.

Platforms like Netflix and Prime Video risk losing subscribers if they raise prices too much, but they are also under pressure to invest in new material, such as original series and movies, in order to remain competitive. One approach for them to increase earnings is to introduce advertisements and gradually raise pricing.

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