Amazon Prime Video could be testing an ad-supported subscription tier. This subscription method, which was previously announced by Netflix and Disney+, received a significant backlash from users. However, it is preferred due to its lower price compared to the ad-free subscription. Finally, Amazon also wants to offer this tier to Prime subscribers.
Amazon Prime Video may introduce an ad-supported subscription
Netflix and Disney introduced ad-supported plans to users in late 2022, offering them new options. Now, it is reported that Amazon is testing a new subscription method to reduce costs and benefit more from advertisements.
Amazon’s ad revenue increased by around 20% in the first quarter of 2023. This seems to indicate that the company will integrate ads more into Prime Video. Currently, sports-related content (not available in Turkey) is presented with ads, while content like Lord of the Rings: The Rings of Power can be watched without ads.
Amazon aims to maintain its competitive edge and meet advertiser demands by considering adding an ad-based tier to its series and movies. The company is reported to have held discussions with Warner Bros. Discovery and Paramount Global for this subscription method.
These entertainment companies will help expand Prime Video’s existing catalog and also benefit from Amazon’s user base.
Details on how Amazon will implement the ad-supported tier are still unclear. However, initial predictions indicate that in addition to the Prime subscription for an ad-free experience, there may be an additional fee specifically for Prime Video.
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