Amazon explores Prime Video ad tier, discusses channels with WBD, Paramount
Amazon is reportedly planning to launch an ad-supported tier for its Prime Video streaming service, according to a report from The Wall Street Journal. Discussions for the new tier have been ongoing for several weeks. The report also states Amazon is in talks with Warner Bros. Discovery and Paramount Global to offer ad-supported versions of their streaming services through Prime Video Channels.
Key Takeaways
- Discussions for a Prime Video ad tier have been ongoing for several weeks, according to the report.
- Amazon is simultaneously in discussions with Warner Bros. Discovery and Paramount Global about distributing their ad-supported tiers.
- The company already runs commercials in its sports broadcasts and is beta testing an integration of its ad-supported Amazon MiniTV service into the Prime Video app.
- An Insider Intelligence analyst noted that formally adding advertising would allow Amazon to centralize its audience and present more consistent branding.
Why It Matters
This potential launch suggests even Amazon, with its massive Prime bundle, is not immune to the subscriber slowdown affecting the wider streaming market. Pursuing an ad-supported tier for its own content while simultaneously negotiating to distribute third-party ad-supported services like those from WBD and Paramount signals a two-pronged monetization strategy. It aims to generate ad revenue from both first-party content and through its role as a platform aggregator. Watch for official confirmation and, crucially, whether this offering becomes a new, cheaper tier or if ads are added to the existing Prime subscription, requiring members to pay more for an ad-free experience.
Read full article at sangritoday.com
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