Amazon Plans to Add Ad-Supported Tier to Prime Video
The discussion is in the early stages.
Amazon plans to add an ad-supported tier to its Prime video streaming service. “The discussion is still in the early stages,” writes Jessica Tonkell in The Wall Street Journal. “It has been going on over the past several weeks, and it comes in the wake of cost-cutting reviews across the company’s businesses, resulting in tens of thousands of layoffs.”
“Advertisers say they are eager to have Amazon offer an ad tier for Prime Video service, which would follow similar moves by other streaming platforms, including Netflix and Disney. Specifically, ad buyers say they want more access to premium movies and programs that have mainly remained ad-free, content that often garners more buzz,” writes The Wall Street Journal. Shows and live sports events, such as The Marvelous Mrs. Maisel and the National Football League’s “Thursday Night Football” games, are the most attractive for buyers.
Amazon is discussing various ways it could introduce ads in Prime Video, people familiar with the matter said. One option would be to increase advertising to existing Prime subscribers and let them pay more for an ad-free alternative and other features. The company is planning for the ad breaks to be short.
That kind of upselling is an approach Amazon has taken recently with its Amazon Music offering: It gave Prime members access to more songs at no additional cost. However, it took away the option to get most pieces on demand unless users opt for a pricier upgrade.
According to Insider Intelligence, the company is the third-biggest player in terms of digital ad revenue in the U.S. after Google and Meta.
Source: The Wall Street Journal
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The discussion is in the early stages.
Amazon plans to add an ad-supported tier to its Prime video streaming service. “The discussion is still in the early stages,” writes Jessica Tonkell in The Wall Street Journal. “It has been going on over the past several weeks, and it comes in the wake of cost-cutting reviews across the company’s businesses, resulting in tens of thousands of layoffs.”
“Advertisers say they are eager to have Amazon offer an ad tier for Prime Video service, which would follow similar moves by other streaming platforms, including Netflix and Disney. Specifically, ad buyers say they want more access to premium movies and programs that have mainly remained ad-free, content that often garners more buzz,” writes The Wall Street Journal. Shows and live sports events, such as The Marvelous Mrs. Maisel and the National Football League’s “Thursday Night Football” games, are the most attractive for buyers.
Amazon is discussing various ways it could introduce ads in Prime Video, people familiar with the matter said. One option would be to increase advertising to existing Prime subscribers and let them pay more for an ad-free alternative and other features. The company is planning for the ad breaks to be short.
That kind of upselling is an approach Amazon has taken recently with its Amazon Music offering: It gave Prime members access to more songs at no additional cost. However, it took away the option to get most pieces on demand unless users opt for a pricier upgrade.
According to Insider Intelligence, the company is the third-biggest player in terms of digital ad revenue in the U.S. after Google and Meta.
Source: The Wall Street Journal
Share:
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