Amazon.com plans to launch an ad-supported tier of it primevideo The Wall Street Journal reported on Wednesday, citing people familiar with the matter.
According to the report, discussions surrounding the ad tier have been going on for several weeks, following the launch of similar plans by competitors Netflix And Walt Disney.
The streaming industry is facing a slowdown in new subscriptions as subscribers grappling with high inflation and interest rates scale back entertainment spending and other discretionary spending.
The WSJ report also said that Amazon was involved in discussions Warner Bros. Discovery And Paramount Global about adding ad-based tiers to their streaming services through Prime Video Channels.
Warner Bros. Discovery and Paramount did not immediately respond to Reuters’ request for comment, while Amazon declined to comment.
Amazon’s shares fell more than 3 percent on Wednesday, in line with a weak broader market.
“In recent years, Prime Video has become more aggressive in pre-show commercials and embedding ad-supported sports,” said Ross Benes, principal analyst at Insider Intelligence.
The sports coverage on Prime Video is already equipped with advertising.
“By officially placing ads in Prime Video, Amazon can centralize its audience and make its branding more consistent,” added Benes.
This has been reported before Amazon Prime Video Subscribers will reportedly start seeing Amazon miniTV Content also on the platform. This is intended to expand its reach beyond Amazon’s standard shopping app. The integration is currently in beta testing on select paid accounts, with a full rollout expected “soon” according to the report.
© Thomson Reuters 2023
