According to persons familiar with the situation, the Wall Street Journal reported on Wednesday that Amazon.com plans to introduce a paid layer of its Prime Video streaming service.
According to the source, discussions about the ad tier have been ongoing for a number of weeks and come after rivals Netflix and Walt Disney announced the introduction of related plans.
The number of new customers joining streaming services has been declining as consumers cut back on leisure and other luxuries as a result of high inflation and interest rates.
In addition, according to the WSJ story, Amazon was in talks with Warner Bros. Discovery and Paramount Global about adding their ad-based streaming tiers to Prime Video Channels.
Requests for comment from Reuters were not immediately answered by Amazon, Warner Bros. Discovery, or Paramount.
Amazon’s stock fell more than 3% on Wednesday, along with the rest of the market.
According to Insider Intelligence chief analyst Ross Benes, “Prime Video has gotten more aggressive in recent years about running promos prior to its shows and including ad-filled sports broadcasts.”
Ads are already present when watching sports on Prime Video.
“Officially putting ads into Prime Video allows Amazon to centralize its audience and be more consistent with branding,” said Benes.
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