Amazon Prime Video service is poised to introduce an ad-supported version

The Wall Street Journal reports that Amazon’s subscription-based service, Prime Video, is poised to introduce an ad-supported version. However, this scheme is still in the early stages of planning, with concrete decisions yet to be made despite ongoing discussions over the past few weeks.

Numerous advertisers have been urging Amazon to introduce this service variant, primarily due to Netflix’s launch of an ad-supported, economical subscription plan in October of last year. Netflix’s service is available in the United States for $6.99 per month, in Canada for $5.99 Canadian dollars, and in the United Kingdom for £4.99. In addition to Netflix, other streaming service providers such as Hulu, Peacock, and the now succinctly named Max, all offer ad-supported, affordable subscription plans.

Amazon has already incorporated ad-supported content into its service. Examples include embedded advertising in certain shows or increased advertising content in sports programming. Amazon has also engaged in negotiations with Warner Brothers, Discovery, and Paramount, considering options like incorporating ad-supported cooperative content into the Prime Video service channels or offering ad-free versions of Max or Paramount+ streaming services via Amazon’s value-added subscriptions.

Currently, Prime Video can be subscribed to separately for $8.99 per month, or as part of Amazon’s Prime membership service, billed at $14.99 per month or $139 per annum. Comparatively, Netflix’s ad-supported service in the United States is priced at $6.99 per month. It is anticipated that if Amazon were to launch an ad-supported Prime Video service, it would likely do so at a lower price point.