Prime Video Planning Ad Tier, Report Says
Amazon Prime Video might introduce an ad-based subscription option.
Following in the footsteps of Netflix, Disney+, and others, Amazon's Prime Video streaming service will introduce an advertising-supporter tier in the future, according to a new report. The Wall Street Journal is citing unnamed sources who said discussions about an ad-based tier for Prime Video are in the "early stages."
Amazon already has a gigantic advertising business, bringing in more than $9.5 billion in the first quarter of 2023 alone, a figure that is up 21% year-over-year.
Prime Video is currently available for $9/month as a standalone service or $15/month as part of a Amazon Prime membership, but there is no word on what the rumored ad tier might cost. Amazon already owns and runs Freevee, a free streaming service that shows ads. Additionally, Amazon's NFL programming includes ads.
The WSJ report went on to say that Amazon is currently holding talks with WB Discovery and Paramount about bringing their own ad-based subscription programs to Amazon Prime Video Channels.
For Prime Video, the report said ad breaks are expected to be "short," but a specific length for a given ad was not mentioned. The report also said that Amazon has made no decisions whatsoever as of yet and could walk away from plans for an ad tier.
Offering an ad tier for Prime Video could be a way for Amazon to help make Prime Video more profitable, at least in theory. Amazon is reported to have spent $7 billion in 2022 alone on its original programs, live sports, and licensed third-party video content.
Launching a Prime Video ad-based tier could help Amazon bring in more money and help pay for expansions to the catalog, including Amazon's rumored pursuit of NBA rights for 2025.
There are a number of Prime Video exclusives in the works, including The Rings of Power Season 2, Citadel Season 2, a Fallout TV series, and more.
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