Amazon is reportedly in the early stages of planning an ad-supported tier for its popular streaming service, Prime Video. By introducing an ad-supported option, Amazon aims to make Prime Video more affordable for subscribers while increasing its ad revenue. This move aligns with similar strategies employed by Netflix and Disney+ in recent years.
The Wall Street Journal reports that discussions regarding the ad-supported tier have been ongoing for several weeks, although specific details, including pricing, remain unclear. Nonetheless, it is anticipated that the cost will be competitive with the offerings from Netflix and Disney+. Netflix introduced its ad-supported plan at $6.99 per month, albeit with certain content limitations due to licensing issues. Meanwhile, Disney+ launched its ad-based plan at a slightly higher price of $7.99 per month.
Amazon’s decision to explore an ad-supported tier is driven by the desire to keep pace with its industry rivals and cater to the preferences of existing and potential subscribers. As Amazon seeks to enhance its ad revenue and streamline costs, this strategic move may contribute to Prime Video’s better positioning in the streaming market.
While the discussions are still in their early stages, the introduction of an ad-supported tier for Prime Video holds the potential to provide an alternative option that appeals to a wider range of customers. Existing Prime members, as well as new subscribers, may find this more cost-effective plan an enticing proposition, similar to the experiences of Netflix and Disney+ users.
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