Amazon is looking to launch an ad-supported tier for its Prime Video streaming service.
According to the Wall Street Journal (WSJ), quoting people familiar with the matter, talks about the introduction of such a tier are at an early stage but have been ongoing for several weeks. It adds that advertisers would welcome the move, which would help cover costs of creating content.
The curiosity here is that Amazon already runs an advertising supported service, Freevee.
However, while advertisers can place their commercials between episodes of Amazon’s rebooted Australian soap Neighbours and detective drama Bosch: Legacy, what they’d prefer is access to The Marvelous Mrs Maisel, Jack Ryan and Daisy Jones and the Six. In other words, television that creates a buzz.
Amazon’s sports coverage, such as the Premier League, already comes with advertising, so arguably it’s not too much of a leap.
In the UK, Prime Video is bound in with Amazon’s next day delivery services at £8.99 per month. In the United States, Prime Video is available for $14.99 a month for Amazon’s Prime membership, and on its own for $8.99 a month.
Amazon is considering several options for introducing ads to Prime Video. These include showing more ads to existing customers and introducing an ad-free alternative for an additional fee.
The WSJ said Amazon is planning for the ad breaks to be short and could still choose to continue with the present format.
It added Amazon is in talks with Warner Bros. Discovery and Paramount to start offering the ad-supported versions of Max and Paramount Plus within its Prime Video Channels.
