Amazon.com Inc. is said to be considering an advertising-supported tier for its streaming service, Prime Video, people familiar with the matter told The Wall Street Journal on Wednesday.
The company is currently having early-stage discussions in order to determine the most effective approach to include advertisements that could bring more ads to its existing Prime subscribers or give them the option to pay more for an alternative without commercials, the insiders explained. The sources claim that Amazon is also discussing with Warner Bros. Discovery and Paramount Global on adding their ad-based streaming tiers through Prime Video Channels.
Amazon booked $9.5 billion in ad revenue during the opening quarter of fiscal 2023, which is 21% higher compared to the corresponding trimester the year before. Last month, Netflix disclosed that its ad tier reached 5 million global monthly users. The US e-commerce giant's stock dropped 3.40% amid the report's release.
