Amazon's ad supported streaming tier has this week gone live in the Australian market, with Prime Video users now required to pay an extra $2.99 per month if they wish to keep their screen time ad-free.

Amazon first announced its plans to bring ads into Prime Video in September last year, flagging the inclusion of "limited advertisements" during shows and movies viewed on the streaming platform's base subscription. Users who wish to go ad-free will be required to upgrade their subscription.

Taking to LinkedIn to mark the occasion, Amazon Ads General Manager for Australia, Willie Pang, described the launch as an "important moment in the advertising industry".

"The way we are watching TV has changed and we think Prime Video is the future of how people will find and consume content. With the ability to reach millions of Australians, predominantly on the biggest screen in their household, we're excited about the opportunities it offers brands and marketers to create meaningful connection," said Pang.

Amazon Prime last year increased its monthly plan from $6.99 to $9.99 and its annual option from $59.99 to $79.99.

"A launch of this scale and consequence cannot happen without a village of teams, people and partners from all around the world - so I want to recognise and honour the humans that have contributed to making what is otherwise an inoccuous 30s pre-roll ad something momentous," said Pang.

Netflix last year launched its ad tier in Australia, with Paramount+ also rolling out its ad-supported offering last month. Disney+ is expected to launch its ad-supported options in Australia later this year.