Amazon Plans Ad Tier for Prime Video

Netflix got one, Disney+ got one, and now it looks like it's Prime Video's turn. Amazon is reportedly planning an ad-supported tier of its streaming service. Sources tell the Wall Street Journal discussions are in the early stages and could still be set aside. But advertisers are definitely looking for more access to the buzzier, premium movies and shows, and Amazon is looking to boost its ad revenue at a time when it is undertaking cost-cutting measures including mass layoffs. Amazon is also reportedly talking with Warner Bros. Discovery and Paramount Global about offering ad-supported tiers of their streaming services through Amazon's Prime Video Channels, which allow users to sign up for other streaming services.

As for how the ads might show up, sources say Prime subscribers might be given an option to pay an increased subscription fee in order to access the ad-free version of Prime Video. Either way, sources say, ad breaks in content are planned to be brief. Sources confirmed the Amazon discussions to Axios as well, and as that site notes, "the company has invested more in new programming, including original shows and live concerts, that it can sell more premium advertising around." Its live sports offerings already include ads. (More Amazon stories.)