Amazon to Launch Ad-Supported Tier for Prime Video: Report
Citing people familiar with the company’s plans, the publication notes that Amazon is looking to strengthen its advertising business and increase revenue from its entertainment sector.
Despite macroeconomic challenges, advertising has remained a growth area for Amazon. In fiscal Q1, the company’s ad revenue reached $9.5 billion, representing a 21% year-over-year increase.
Based on Insider Intelligence rankings, Amazon is the third-largest player in digital ad revenue in the United States, following Google and Meta.
Ad buyers specifically desire greater access to premium movies and programs that have mostly remained ad-free, as such content often generates more attention.
Currently, Prime Video offers a wide range of original shows, including the popular “The Marvelous Mrs. Maisel,” a vast movie library, and live sports coverage such as the National Football League’s “Thursday Night Football” games.
Amazon has already taken steps to introduce ad-supported programming to Prime Video, incorporating ads into its sports coverage and utilizing product-placement advertising in some shows.
Furthermore, Amazon is said to be engaged in discussions with Warner Bros., Discovery, and Paramount Global to include ad-based tiers of their streaming services through Prime Video Channels.