Yahoo Finance Amazon is reportedly planning to launch an ad-supported tier on Prime Video
As more streaming services launch ad-supported plans to generate more revenue, Amazon could be the latest company to jump in line.
The Wall Street Journal reported Wednesday that, according to people familiar with the matter, Amazon is in the early stages of planning an ad-supported tier for Prime Video.
While nothing is set in stone, the company has apparently discussed an option where existing Prime Video subscribers would automatically get ad-supported content, and they would be prompted to pay more in order to remove the ads, reported the WSJ. However, the ad breaks would be short, the publication added.
Amazon declined to comment to TechCrunch as the company doesn’t “comment on rumors or speculation,” said a company spokesperson.
If Amazon were to expand its ad business, it wouldn't be a surprise, especially since it would follow similar moves made by competitors. Major streaming giants Netflix and Disney+ were the most recent platforms to launch ad-supported plans.
With subscriptions currently ranging from $8.99 to $14.99 per month, launching a cheaper, ad-supported subscription on Prime Video would likely boost its subscriber base, helping the streamer better compete with rivals.
Plus, parts of the streaming service already feature ads, such as its NFL Thursday Night Football sports offering. During last year’s NewFronts presentation, Amazon announced its virtual product placement beta program, which lets advertisers place products directly into Prime Video content.
Additionally, Amazon introduced Fire TV Channels back in May -- a free, ad-supported content offering on Fire TV devices. Amazon also generates ad revenue from its ad-supported streaming service, Freevee.
