Amazon plans ad-tier for Prime Video streaming service: report
Amazon may soon be launching an ad-supported tier for its Prime Video streaming service, according to sources familiar with the matter cited by The Wall Street Journal on Wednesday. Talks around the ad tier began several weeks ago in response to similar plans by rivals Netflix and Walt Disney. The streaming industry has been experiencing a slowdown in new sign-ups as subscribers scale back on discretionary spending amid difficult economic conditions. Additionally, Amazon has been engaging in discussions with Warner Bros Discovery and Paramount Global about adding ad-based tiers of their streaming services via Prime Video Channels. However, Amazon, Warner Bros Discovery, and Paramount have yet to respond to requests for comment from Reuters.
Amazon’s shares fell by more than 3% on Wednesday, following a pessimistic broader market trend.
FAQs:
What is Prime Video?
Prime Video is a streaming service offered by Amazon. It includes a variety of movies, TV shows, and live sporting events, as well as Amazon’s original programming.
What will the ad-supported tier entail?
Details surrounding the ad-supported tier have yet to be released. However, it’s expected that the tier will offer subscribers with access to a selection of TV shows and movies in exchange for watching ads.
Why is Amazon considering launching an ad-supported tier?
The streaming industry has experienced a slowdown in new subscriptions due to economic challenges. Offering an ad-supported tier could attract new subscribers who value a lower price point but are willing to watch ads.
Will Prime Video’s new ad-supported tier impact pricing?
Currently, there has been no word on how the ad-supported tier will affect pricing. Amazon has not confirmed whether the addition of ads will result in lower costs for subscribers.
Will the ad-supported tier feature the same programming as the standard-tier?
It is currently unclear if the ad-supported tier will offer the same streaming options as the standard-tier. However, Amazon has been in discussions with Warner Bros Discovery and Paramount Global about adding their ad-based tiers to Prime Video Channels, which suggests there may be variations in programming.
According to reports, Amazon is preparing an advertising tier for its Prime Video streaming service.
Amazon is reportedly planning to introduce an advertising-supported version of its Prime Video streaming service, according to sources familiar with the matter. The plans have been in discussion for several weeks and come following the introduction of similar strategies by rivals Netflix and Walt Disney. Subscription services have reportedly been experiencing a slowdown in new users amid economic uncertainty. Amazon is said to be in negotiations with Warner Bros Discovery and Paramount Global to offer ad-supported versions of their streaming services through Prime Video Channels, though no official statements have been made by any parties involved. Amazon’s shares were down over 3% in line with general market weakness.