Amazon Prime might soon launch an advertising-supported subscription tier that runs ads before shows and movies, the Wall Street Journal reported last Wednesday.
According to the report, plans to launch an ad tier have been under talks for weeks, with Prime competitors Netflix and Disney Plus launching their own ad-supported plans in previous months.
Additionally, the company is looking into ways it can roll out ads into its service, such as displaying ads to Prime members and offering an “option to pay more for an ad-free alternative and other features.”
The streaming giant is reported to be in talks with Warner Bros. Discovery and Paramount Global regarding the addition of ad-backed tiers via Prime Video Channels. It’s also eyeing to acquire rights to National Basketball Association (NBA) games by the time they expire in 2025.
Insider Intelligence Principal Analyst Ross Benes said the company has “gotten more aggressive” in its push to run ads before shows and during sports broadcasts.
"Officially putting ads into Prime Video allows Amazon to centralize its audience and be more consistent with branding," Benes added.
Amazon’s Prime Video currently offers customers the option of an $8.99 a month standalone subscription or a $14.99 a month Prime membership.