Amazon Prime Video could be about to follow the lead of streaming competitorsNetflixandDisney+by offering a new ad-supported tier, according to a new report.
Both Netflix and Disney+ have added a cheaper tier to their subscription offerings in recent months, with adverts used as a way to give customers the same content at a cheaper price. Now, it seems that Amazon is getting ready to follow suit.
Same content, more ads
WhileAmazon Prime Videoalready places ads around its live sports content, streaming movies and TV shows have so far remained ad-free. However, a new report byThe Wall Street Journalsuggests that might change, with discussions underway surrounding what a new ad-supported tier might look like.
Citing unspecified people familiar with the situation, the WSJ says that Amazon “is planning to launch an advertising-supported tier of its Prime Video streaming service as it looks to further build its ad business and generate more revenue from entertainment.” The report goes on to say that Amazon is also holding discussions with Warner Bros Discovery and Paramount about the possibility of adding new ad-supported tiers to their own streaming services that are currently offered via Prime Video Channels.
It hasn’t yet been made clear how much Amazon might charge for a new ad-supported tier, however, nor do we know when it might launch. Discussions around the new tier are only said to have been ongoing for a few weeks at this point, suggesting that there are still plenty of things to be ironed out before a cheaper tier is rolled out to the public.
If Amazon Prime Video does launch a cheaper, ad-supported tier, it would be another example of the trend away from premium subscriptions and towards those that have a lower price subsidised by ads. The streaming market in general is a competitive one, with Amazon Prime Video just one of many alongside the aforementioned Netflix and Disney+. TheApple TV+service is fast becoming a major player as well thanks to its huge budget and expansion into the world of sports. The company’s deal withMajor League Soccerin the United States is deemed so important that it’s reportedly willing to give ex-Barcelona star Lionel Messi ashare of the takingsjust to get him to join the league’s Inter Miami, for example.
Not everyone is a fan of ads, of course, with some willing to pay a premium to avoid them.
