E-commerce giant Amazon (NASDAQ:AMZN) is set to introduce ads on its Prime Video platform starting in 2024. This aligns Amazon with several other streaming platforms that have integrated varying subscription tiers. To maintain an uninterrupted viewing experience, U.S.-based Prime members have the option of an ad-free service for an additional monthly fee of $2.99. The decision reflects the streaming market’s challenges, where services grapple with retaining users amid fluctuating content offerings and pricing models.
Furthermore, ads won’t restricted to the U.S. market. Following its initiation in the U.S., U.K., Germany, and Canada, Amazon will extend this feature to regions including France and Australia in 2024. Despite these modifications, Amazon has confirmed that there will be no changes to the Prime membership’s pricing structure next year.
Is Amazon a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 39 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $175.63 per share implies 33.74% upside potential.