An ad-supported tier for its Prime Video streaming service is reportedly being planned by Amazon.com, as per the Wall Street Journal. People familiar with the matter cited discussions that have been ongoing for several weeks. This move follows similar initiatives taken by rivals Netflix and Walt Disney.
The streaming industry is facing a slowdown in new sign-ups due to subscribers cutting back on entertainment spending and discretionary expenses amid high inflation and interest rates.
Amazon is said to be engaged in discussions with Warner Bros. Discovery and Paramount Global to include the ad-based tiers of their streaming services through Prime Video Channels. No immediate response was received from Warner Bros. Discovery and Paramount when requested for comment, and Amazon declined to comment.
Shares of Amazon experienced a more than 3 percent decline on Wednesday, aligning with a weak broader market.
According to Ross Benes, principal analyst at Insider Intelligence, Prime Video has become increasingly aggressive in running promos before its shows and featuring ad-filled sports broadcasts in recent years. The introduction of ads into Prime Video will enable Amazon to centralize its audience and ensure consistency with branding, Benes added.
Reports have also indicated that Amazon Prime Video subscribers will soon have access to Amazon miniTV content on the platform. This integration is currently undergoing beta testing on selected paid accounts, with a full rollout anticipated in the near future, as stated in the report. The aim is to expand the reach of miniTV content beyond the default Amazon shopping app.
With the upcoming introduction of an ad-supported tier for Prime Video, one thing is certain: it will be priced lower than the current starting plan. This presents a highly enticing opportunity for new members to join Amazon Prime. The new plan will be added to the existing standalone Prime Video Membership, which includes options such as the Rs 299 monthly plan, Rs 599 quarterly plan, and Rs 1,499 yearly plan.
Thank you for reading. We hope you enjoyed the article and found it informative. Please consider sharing it and stay in this space for more updates. Please stay safe, and we hope to see you around.
