Amazon (AMZN) -) shares moved higher Friday after the tech and online retail giant said it would introduce 'limited' ads to its Prime Video service early next year.
Amazon said the ads will be introduced first in the U.S, The U.K., Canada and Germany in early 2024, with the rollout then moving to key markets in Europe, Mexico and Australia later in the year.
The current Prime membership price won't change as a result of the advertising addition, the company said, but it does plan to offer an ad-free option for an additional $2.99 per month for U.S. members.
The move follows the introduction of ad-supported tiers at video streaming rivals Netflix (NFLX) -), Disney (DIS) -) and Warner Bros. Discovery's (WBD) -) Max over the past year, all launched in an effort to boost overall revenues aimed at offsetting the costs of creating new content and purchasing rights for live events such as concerts and sports.
"To continue investing in compelling content and keep increasing that investment over a long period of time, starting in early 2024, Prime Video shows and movies will include limited advertisements," Amazon said in a statement on its website. "We aim to have meaningfully fewer ads than linear TV and other streaming TV providers."
Amazon shares were marked 1.48% higher in early Friday trading following news of the new ad-supported tier to change hands at $131.26 each.
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