Amazon Set to Launch Free Ad-Supported Prime Video Tier
Amazon's Prime Video is set to launch an ad-supported tier, which will keep the streaming service in line with its competitors
Amazon is reportedly considering an ad-supported tier for its Prime Video streaming service. Prime Video has grown significantly since its launch in 2006 and is now a major player in the streaming market, competing with the likes of Netflix and Disney+. Among its offerings are original series such as The Lord of the Rings: The Rings of Power and The Marvelous Mrs. Maisel, as well as live sports and a vast library of movies thanks to Amazon's acquisition of MGM. With the introduction of an ad-supported option, Prime Video could potentially become more affordable for its subscribers. According to anonymous sources cited by The Wall Street Journal, Amazon is currently in the early stages of discussions to launch the ad-supported option, as the company seeks to increase its ad revenue and cut costs amid layoffs.
Prime Video Is Keeping Up With Its Competitors
Amazon is following in the footsteps of its key rivals, Netflix and Disney+, by introducing an ad-supported tier for its Prime Video service. Netflix rolled out a similar offering in late-2022, priced at $6.99 per month, but certain titles were not available due to licensing issues. Disney+ also followed suit, launching an ad-based plan for a slightly higher monthly fee of $7.99. The cost of Amazon's ad-supported option is yet to be confirmed, but it is expected to be comparable to its competitors. As Amazon Prime currently costs $14.99 per month for a full membership or $8.99 a month for Prime Video alone, the new tier is likely to be a popular alternative for both existing and new customers, as seen with Netflix and Disney+ subscribers.
Source: The Wall Street Journal
