Amazon could be close to launching an ad-supported tier for its Prime Video service, according to a Wall Street Journal report on Wednesday.
Citing people familiar with the proposed plan, the report said talks have been continuing for several weeks, though added that they’re still in their early stages.
According to the Journal, advertisers are keen for Amazon to launch an ad tier for its Prime Video service, with access to premium movies and programs a particular target.
At the current time, Prime Video is part of Amazon’s Prime package and costs $15 per month or $139 per year. For those who can do without extras such as shopping perks, music streaming, and Kindle books, membership to Prime Video costs $9 a month. Amazon also has a free ad-supported service called Freevee with select TV shows and movies, but it’s only available in the U.S., U.K., and Germany.
An ad-supported tier for Prime Video would follow in the footsteps of streaming rivals such as Netflix, which introduced ads in November last year for $7 per month, and Disney+, whose ad tier arrived in December for $8 per month. Hulu and Peacock also offer ad tiers for $8 and $5 per month, respectively.
Amazon’s Prime Video service is already generating some revenue through ads with its sports programming, and also via product placements with some of its content.
But bringing ads to more of its movies and shows would bring it more revenue and pave the way for an ad-supported tier that could prove an attractive option for those looking for a cheaper way to subscribe.
Ad tiers often come with restrictions, however. Netflix’s offering, for example, limits streams to 720p and only lets you play content on one device at a time. And while you can download Netflix movies and shows for offline viewing with the Basic, Standard, and Premium tiers, its ad tier does not allow this feature.
If you fancy trying Amazon Prime — and Prime Video — for free, the company offers a one-month trial. Here’s how to set it up.
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