Amazon Plans to Introduce Ad Tier for Prime Video Streaming Service: Report

The streaming industry has been facing a slowdown in new sign-ups as subscribers struggling with high inflation and interest rates.

Amazon Plans to Introduce Ad Tier for Prime Video Streaming Service: Report

Discussions around the ad tier have been going on for several weeks, according to the report

Highlights
  • Discussions around ad tier follow the launch of similar plans by Netflix
  • Amazon holding discussions with Warner Bros. Discovery, Paramount Global
  • Sports coverage on Prime Video already comes with ads
Advertisement

Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Discussions around the ad tier have been going on for several weeks, according to the report, and follow the launch of similar plans by rivals Netflix and Walt Disney.

The streaming industry has been facing a slowdown in new sign-ups as subscribers struggling with high inflation and interest rates dial back entertainment spending and other discretionary expenses.

The WSJ report also said Amazon was holding discussions with Warner Bros. Discovery and Paramount Global about adding the ad-based tiers of their streaming services through Prime Video Channels.

Warner Bros. Discovery and Paramount did not immediately respond to Reuters' requests for comment, while Amazon declined to comment.

Shares of Amazon were lower more than 3 percent on Wednesday, in line with a weak broader market.

"In recent years, Prime Video has gotten more aggressive about running promos prior to its shows and including ad-filled sports broadcasts," said Ross Benes, Insider Intelligence principal analyst.

Sports coverage on Prime Video already comes with ads.

"Officially putting ads into Prime Video allows Amazon to centralize its audience and be more consistent with branding," Benes added.

It was previously reported that Amazon Prime Video subscribers will reportedly start seeing Amazon miniTV content on the platform as well. This is said to broaden its reach beyond the default Amazon shopping app. The integration is currently being beta tested on select paid accounts, with a full rollout expected ‘soon', as per the report.

© Thomson Reuters 2023


Why are they still making more Harry Potter? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Kaspersky Appoints Jaydeep Singh as Head for India Operations
Binance CEO's Trading Firm Received $11 Billion via Client Deposit Company, Claims SEC
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »