Amazon plans ad tier for Prime Video streaming service - WSJ


FILE PHOTO: The logo of streaming service Amazon Prime Video is seen in this illustration picture taken March 5, 2021. REUTERS/Danish Siddiqui/Illustration

(Reuters) -Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Discussions around the ad tier have been going on for several weeks, according to the report, and follow the launch of similar plans by rivals Netflix and Walt Disney.

The streaming industry has been facing a slowdown in new sign-ups as subscribers struggling with high inflation and interest rates dial back entertainment spending and other discretionary expenses.

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

Warner Bros Discovery and Paramount did not immediately respond to Reuters' requests for comment, while Amazon declined to comment.

Shares of Amazon were lower more than 3% on Wednesday, in line with a weak broader market.

"In recent years, Prime Video has gotten more aggressive about running promos prior to its shows and including ad-filled sports broadcasts," said Ross Benes, Insider Intelligence principal analyst.

Sports coverage on Prime Video already comes with ads.

"Officially putting ads into Prime Video allows Amazon to centralize its audience and be more consistent with branding," Benes added.

(Reporting by Yuvraj Malik and Samrhitha Arunasalam in Bengaluru; Editing by Devika Syamnath)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

UK regulator will consider probing Apple's, Google's mobile browsers
EU regulators scrap probe into Apple's e-book rules after complaint was withdrawn
Hyundai recalls over 145,000 electrified US vehicles on loss of drive power
'World of Warcraft' still going strong as it celebrates 20 years
Northvolt CEO steps down, saying group needs up to $1.2 billion
Bitcoin at record highs, sets sights on $100,000
Ukraine urges gamers not to enter Chernobyl exclusion zone
Kioxia's market value set at $4.9 billion in IPO
Apple readies more conversational Siri in bid to catch up in AI
China’s richest man berates PDD, ByteDance for months of misery

Others Also Read