Thursday, 8 June 2023

Digital TV Europe: Amazon reportedly set to introduce ad tier to Prime Video

Story from Digital TV Europe:

Amazon is planning to add an ad-supported tier to Prime Video, following the examples of Netflix and Disney+, according to a report in the Wall St Journal.

According to the report, Amazon is said to be considering a range of options to increase advertising on Prime Video, but discussions are still at an early stage.

Amazon’s sports coverage already includes adverts in some instances, along with product placement on some shows. According to the WSJ, the streamer is looking at including ad-based tiers fdrom Warner Bros. Discovery and Paramount on its Prime Video Channels super-aggregation service. Users can currently sign up for ad-free versions of Max and Paramount+ via the Channels offering.

The WSJ said that advertisers have pushed for the introduction of advertising on the platform to take advantage of the reach of premium movies and series on the service.

One option said to be under discussion for the Prime Video service proper is to introduce ads on the existing service and charge a premium for an ad-free version.

The discussion of how and when to introduce more advertising on the platform comes as Amazon, like other big tech operations, looks to focus on profitability rather than just extending reach.

Amazon joined other big tech operations with news of a coming swathe of job cuts and economies at the end of last year, with the company’s retail and device divisions in the firing line.

Job cuts reached the Prime Video and Amazon Studios units in April, with news that around 100 jobs would be cut in those divisions, with Amazon Studios head of creative for unscripted TV Tracey Lentz among the higher-profile departures.

The Journal meanwhile also reported that Amazon is discussing a bid for US NBA basketball games when rights come up for renewal in 2025.

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