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Amazon reportedly planning to launch ad-supported tier for Prime Video

Amazon to introduce “limited” ads on Prime Video in 2024
Amazon is also in talks with Warner Bros Discovery and Paramount Global about commencing ad-based versions of their streaming services through Prime Video Channels.


Amazon is reportedly planning to launch an ad-supported tier of Prime Video, its subscription-based over-the-top streaming service. The move comes as the streaming company plans to further build its advertisement business and generate more revenue from entertainment, The Wall Street Journal reported yesterday.


The discussions around the ad tier have been going on for several weeks but are still in the early stages, sources told the media outlet. Since the company is weighing several aspects to implement ads on the platform, the move could also mean that Amazon will show more ads to its existing subscribers to nudge them to pay more for ad-free alternatives, the report added. The duration of ad breaks will reportedly be short but there is no clarity on a set number of ad minutes.


In addition, Amazon is also in talks with Warner Bros Discovery and Paramount Global about commencing ad-based versions of their streaming services Max and Paramount Plus within Prime Video Channels. Meanwhile, there is no official confirmation from Amazon yet.


In India, the costliest Amazon Prime membership cost Rs 1,499 for one year. In April, Amazon raised the price of its monthly and quarterly subscription plans, while annual plans and Prime Lite subscriptions remained unchanged at Rs 1,499 and Rs 999. The monthly Prime subscription is priced at Rs 299, up from the previous price of Rs 179, and the quarterly membership now cost Rs 599, up from the earlier price of Rs 459.


It would be noteworthy to see when and where the ad tier is implemented and how the latest ad-supported tier would be different from the company’s existing cheaper, ad-supported version of Prime Amazon Prime Lite, which comes with reduced benefits like free two-day delivery. Other major benefits like unlimited access to Amazon Prime Video, and early and exclusive access to lightening deals on its e-commerce platform, among others, remain the same in the Lite membership. Unlike Amazon Prime which offers monthly/quarterly/annual plans, Prime Lite is available only for annual subscription.


Last year, another OTT giant and Prime Video’s rival Netflix also introduced its ad-supported subscription plan in a dozen of countries including the U.S., U.K., Canada, etc. Netflix’s move came after the streaming major lost hundreds of thousands of subscribers in the second quarter of 2022. Netflix also began a crackdown on password sharing for its subscription services in February and later in May expanded it to over 100 countries across the globe. The company believes that the new password policy along with its cheaper add-based subscriptions will boost growth in the second half of 2023.


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