Prime Video to Launch ad-free Subscription tier at a Higher Price in India

Starting in 2025, Amazon Prime Video will introduce advertisements in shows and movies for Indian users. To cater to those who want an ad-free experience, Amazon will launch a new premium subscription tier at a higher price.

The current Prime membership fee will stay the same for those choosing the ad-supported version. Prime Lite subscribers will still encounter ads under their existing plan, with further details to be provided closer to the launch.

This decision highlights the challenges facing the subscription video on demand (SVOD) segment, which has seen little growth recently.

According to The Ormax OTT Audience Report: 2024, the Indian OTT audience has grown by 14% year on year, reaching 547.3 million users and achieving a penetration rate of 38.4%. This data is based on a sample of 12,000 individuals from both urban and rural areas of India.

The increase in the audience size is primarily fueled by the advertising video on demand (AVOD) sector, which saw a 21% growth, while the subscription video on demand (SVOD) segment experienced a decline of 2%, according to the report.

“To continue investing in engaging content and increasing that investment long-term, starting in 2025, Prime Video shows and films in India will feature limited advertisements. We plan to offer significantly fewer ads than what is seen on linear television and other streaming platforms. Additionally, we’ll introduce a new ad-free option and share pricing details later,” Amazon stated in a blog post.

“We won’t be changing the current Prime membership fees in 2025. Members will be notified via email several weeks before ads appear, with instructions on how to sign up for the ad-free option if they wish. This update does not affect Prime Lite subscribers, who will continue to enjoy the full Prime Video library with ads on a single device (TV or mobile) in 720p HD,” the post continued.

Since its launch in India in December 2016, Prime Video has emerged as a top entertainment platform, providing a wide array of Indian and international films, popular series, award-winning Amazon Originals, add-on subscriptions, and film rentals—all in one easy-to-access location.

Alongside its SVOD platform, Prime Video, Amazon also owns Amazon MX Player, an AVOD service, Prime Video Channels, an OTT aggregation service, and a film rental service. 

In early 2024, Amazon Prime Video began introducing ads to its streaming service in the US and other countries. It now offers an ad-supported tier in addition to its existing ad-free subscription model, which is still available for an extra fee.