Amazon Prime Video is reportedly planning to launch an ad-supported tier, according to a report from the Wall Street Journal. The report, which cites people familiar with the matter, says that Amazon is in the early stages of planning the new tier and that it could launch as soon as this year.
If Amazon does launch an ad-supported tier, it would follow a trend that has been seen in the streaming industry in recent months. Netflix, Hulu, and Disney+ have all launched ad-supported tiers in recent months, and other streaming services are expected to follow suit.
There are a few reasons why Amazon might be considering an ad-supported tier. First, it could help the company to attract more subscribers. Currently, Amazon Prime Video costs $8.99 per month. An ad-supported tier could be priced lower, making it more affordable for some consumers.
Second, an ad-supported tier could generate more revenue for Amazon. The company could sell ads to businesses that want to reach Prime Video subscribers. This could help to offset the cost of producing original content and licensing movies and TV shows.
Third, an ad-supported tier could help Amazon to compete with other streaming services. Netflix, Hulu, and Disney+ all offer ad-supported tiers, and Amazon may feel that it needs to offer a similar option in order to remain competitive.
It is still too early to say for sure whether or not Amazon will launch an ad-supported tier for Prime Video. However, the report from the Wall Street Journal suggests that it is a possibility that the company is considering.
Here are some of the pros and cons of Amazon launching an ad-supported tier for Prime Video:
Pros:
- Could attract more subscribers
- Generate more revenue
- Help Amazon to compete with other streaming services
Cons:
- Could alienate some subscribers who prefer an ad-free experience
- Could make it more difficult for Amazon to sell premium content
- Could lead to a decrease in the quality of original content
Overall, it remains to be seen whether or not Amazon will launch an ad-supported tier for Prime Video. However, the report from the Wall Street Journal suggests that it is a possibility that the company is considering.
