Amazon Prime Video Reportedly Plans to Launch Ad-Supported Tier
Amazon Prime Video is reportedly about to jump on the commercial bandwagon. Following the recent introduction of Netflix with ads and Disney+ with ads, the Amazon-backed streamer is reportedly in the "early stages" of introducing a Prime Video ad-supported subscription tier, according to a report from The Wall Street Journal.
Sources close to the situation told the outlet in a report published Wednesday that discussions regarding an ad-supported tier "have been going on over the past several weeks," but those discussions still appear to be "in the early stages." The company is reportedly looking at several ways it could implement ads in Prime Video, such as showing more ads to existing Prime subscribers and giving them the option to pay more for an ad-free alternative. The ad breaks will reportedly be "short," according to the sources. The e-commerce giant is also said to be in talks with both Warner Bros. Discovery and Paramount Global about adding the ad-based tiers of their streaming services through Prime Video Channels. Sources separately confirmed to Axios that Amazon's leadership approved a plan to create an ad-supported tier for its Prime Video service last week. Amazon has not publicly addressed the reports at this time.
The talks are the result of an increased focus on ad revenue, the sources said, and come in the wake of cost-cutting reviews across the company's businesses. The Wall Street Journal noted that "advertisers say they are eager to have Amazon offer an ad tier for Prime Video service," and "ad buyers say they want more access to premium movies and programs that have remained largely ad-free, content that often garners more buzz."
At this time, details of an ad-supporter tier remain murky, including the cost. Amazon currently offers Prime Video as part of its $14.99 per month Prime membership or for $8.99 per month as a standalone subscription. Prime Video also allows subscribers to add additional ad-free subscriptions to services like Max, Paramount Plus, and Showtime through Prime Video Channels.
Should Amazon implement an ad-supported Prime Video subscription, it would be the latest company to do so. Last year, both Disney+ and Netflix launched new subscription tiers with ads. Despite the initial backlash to these additions, Bloomberg reported in March that Netflix's Basic with ads plan had 1 million subscribers in the U.S., signaling that ad-supported streaming is viable.