Saturday, 20 Apr 2024

Amazon planning on introducing new ad tier for Prime Video

Amazon Prime Video could be the latest streaming service to get a new subscription tier with advertisements.

The tech giant has been discussing the ad tier for ‘several weeks’, as reported by the Wall Street Journal on Wednesday, citing people familiar with the matter.

The news follows recent launches of similar cheaper subscription plans with adverts by rivals such as Netflix and Disney.

The streaming industry has been facing a slowdown in new sign-ups as subscribers struggling with high inflation and cost of living, cut back on entertainment spending.

The WSJ report also said Amazon was holding discussions with Warner Bros and Paramount about adding the ad-based tiers of their streaming services through Prime Video Channels.

Currently, Prime Video runs promos of its original content at the beginning of its shows while its sports coverage already comes with ads.

The streaming service is currently ‘discussing a variety of ways’ that they could introduce an ad-supported tier to their subscribers, according to the report.

It’s expected that Prime Video could introduce ads without hiking the price of its current £8.99 monthly membership, which includes Prime Video.

A standalone Prime Video membership in the UK is £5.99 a month so you might have to pay extra to enjoy an ad-free experience.

The report also speculated that Amazon might an ad tier the only option available, keeping its commercials ‘short’ and relatively unobtrusive.

Amazon already has Freevee, an ad-supported video-on-demand streaming service with original and licensed programming. Previously known as IMDb TV, Freevee was only available in the US but launched in the UK in autumn 2021.

Most recently, Netflix launched a cheaper, ad-supported subscription plan in the UK for just £4.99 per month.

Metro.co.uk has reached out to Amazon for comment.

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