Amazon Prime will start showing limited ads on movies and TV shows streamed on the platform from January 29, the company wrote in an email to its customers.
Amazon had announced its plan to incorporate ads into its Prime Video through a press release in September.
The rollout of ads will begin in the US, UK, Germany, and Canada, with subsequent expansion to France, Italy, Spain, Mexico, and Australia later in the year.
The current price of Prime membership will remain unaffected in 2024.
Amazon in its release said it will introduce a new ad-free option for US Prime members at an additional $2.99 per month, with pricing for other countries to be disclosed later.
Prime members will receive an email with information on how to sign up for the ad-free option several weeks before ads are introduced into Prime Video.
According to Verge, the current pricing for Amazon Prime is $14.99 per month or $139 annually, with the option to subscribe to Prime Video individually for $8.99 per month.
The newly proposed fee for ad-free streaming would result in a Prime cost of just under $18, and standalone Prime Video would be priced at just under $12.
The development comes against the backdrop of other streaming services raising subscription rates and introducing ads on their lowest-priced monthly plans.
While the monthly cost of Amazon Prime itself remains unchanged, customers who wish to maintain their current ad-free experience will have to incur additional costs starting January 29.
As reported by CNBC, Amazon's advertising business generated a robust $12.06 billion in revenue in Q3, marking a notable 26 per cent increase from the same period last year.
This surpassed analyst expectations, which predicted a third-quarter revenue of $11.6 billion for Amazon's advertising unit.
Amazon Prime Video has garnered 302.9 million users worldwide, with the US contributing 157.1 million viewers. The streaming service is currently available in 25 countries, with an extensive international presence since its launch in 2007.
Amazon's overall quarterly sales rose by 13 per cent per cent year over year, reaching $143.1 billion. The company's advertising arm now holds a 7.5 per cent share of the global digital advertising market, making it a significant player in the industry.
Amazon CEO Andy Jassy highlighted growth opportunities in the advertising sector, citing the success of their deal with the National Football League.
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