Amazon’s Prime Video is reportedly looking to follow in Disney+ and Netflix’s footsteps.
The company is exploring the possibility of launching an ad-supported version of its Prime Video streaming service, according to The Wall Street Journal, via The Verge. The move could help Amazon generate more revenue from its growing advertising and Prime Video businesses and compete with other streaming platforms that offer cheaper tiers with ads.
Prime Video is included with an Amazon Prime membership, which costs $99/year or $9.99/month. With the streaming service’s current membership, users get an ad-free experience alongside access to a library of original and licensed content.
Sources familiar with the matter told the WSJ that Amazon is considering several ways to introduce ads into Prime Video, such as showing more ads to existing Prime subscribers and then giving them an option to pay more for an ad-free alternative and other features. The sources also said that the ad breaks would be short, but did not specify how much the ad-supported tier would cost or when it would launch.
Further, WSJ reports that Amazon is in talks with Warner Bros. Discovery and Paramount Global about adding the ad-based tiers of their streaming services through Prime Video Channels.
However, sources familiar with the matter also said that Amazon has not “firmed up its plans,” and it may or may not move forward with its plans for an ad-supported tier.