Amazon Considers Adding Ads to Its Streaming Service: What This Means for Amazon Prime Users
Amazon has been considering introducing ads to its streaming service, according to a recent report in the Wall Street Journal. This move, if implemented, could mean that Amazon Prime users would no longer be able to enjoy commercial-free streaming of their favourite movies and shows. While this news may come as a shock to some, similar streaming giants like Hulu, Netflix, and Disney have already explored ad-level models in their own businesses.
Why Is Amazon Considering This Move?
Amazon’s entertainment business has been struggling in recent times, with the company even resorting to its largest job cut in its history earlier in the year. Despite this, Amazon’s ad revenue has remained a bright spot in an otherwise bleak economic picture. Advertising revenue grew to $9.5 billion in the first quarter of 2021, up 21% YoY. This trend has prompted Amazon executives to become more optimistic about building their ads business and generating more revenue.
Additionally, the WSJ reports that advertisers are eager to access Amazon’s premium movies and shows, such as The Marvelous Mrs. Maisal and the James Bond film No Time Die. This has led Amazon to consider offering an ad-supported tier that would allow access to this content for lower prices.
What Does This Mean for Amazon Prime Users?
If ads are introduced to Amazon’s streaming service, this would represent a significant change. The move would mean that Amazon Prime users, who currently enjoy commercial-free streaming of their favourite shows and movies, would have to sit through ads, just like with traditional television broadcastings. However, it’s essential to note that discussions about this move are still in the early stages, and it’s unclear when or if the ads will actually appear on Prime Video.
Furthermore, Prime Video already has various add-on channels that come with a monthly subscription fee and give access to movies, shows, or live TV channels. These add-ons, such as HBO Max or Paramount+, are available as ad-free versions. If introduced, the ads will most likely be included in the base subscription model, giving users the option of still accessing an ad-free experience through add-on channels.
What Should Amazon Prime Users Do?
It’s still unclear whether or when Amazon will introduce ads to its streaming service, so there’s nothing Prime users need to do at this point. However, if Amazon does introduce ads, Prime users will have to make a choice between living with the ads or paying extra for the ad-free add-ons. It’s essential to carefully consider what’s best for their budget and viewing experience before making a decision.
The Possibility of Warner Bros. Discovery and Paramount Global Adding Ad-Supported Tiers
As part of Amazon’s expansion plans, it is in talks with Warner Bros. Discovery and Paramount Global. The discussions cover the potential for both companies to add ad-supported tiers of their streaming services to Prime Video Channels. If this happens, users will be able to subscribe to these services through Prime Video and view content such as Friends and The Real World through the Prime Video app.
Currently, users can subscribe to ad-free versions of HBO Max and Paramount+ through Prime Video Channels. Still, discussions are still ongoing for ad-supported tiers for these services and any future services that Amazon plans to offer under the Prime Channels functionality.
Final Thoughts
Amazon has been exploring ways to generate more revenue from its entertainment business, and adding ads to its streaming service seems to be a potential solution. This move will not only allow Amazon to take advantage of its advertising revenue, which is growing yearly, but it could also enable Prime Video to offer lower subscription fees through ad-supported tiers.
While no official implementation date has been announced, it’s wise for Amazon Prime users to stay tuned for any updates and consider what’s best for their viewing experience and budget. In any case, Amazon is set to provide more content for Prime Video users by negotiating with other streaming services to offer ad-supported tiers of content, which could be an exciting opportunity for those who are looking for more affordable streaming services.
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Don’t get too used to seeing your Amazon Prime content commercial-free. According to a report in the Wall Street JournalThe company is considering adding a tier of ads to its transmission service.
Amazon he’s looking for ways to increase revenue in his entertainment business, which has seen better days. Earlier this year, the online giant launched the most extensive layoffs in company history.
Amazon isn’t alone in its streaming woes. The industry has faced a slowdown for months as new subscriptions have slowed and consumers are cutting back on service due to economic challenges.
Amazon isn’t the only streamer considering ad-level models, either. Hulu, Netflix and Disney have followed this path.
Why ads?
Amazon’s ad revenue has been a bright spot in an otherwise bleak economic picture. Advertising revenue grew to $9.5 billion in the first quarter, up 21% year-over-year, prompting executives to become more optimistic about building that sector of their business.
Additionally, WSJ reports that advertisers are eager to access Amazon’s premium movies and shows, such as The Marvelous Mrs. Maisal and the James Bond film No Time Die.
Meanwhile, Amazon is in talks with Warner Bros. Discovery and Paramount Global to add ad-supported tiers of their streaming services to Prime Video Channels. This would allow users to subscribe to these services through Prime Video and view their content through the Prime Video app. Users can currently subscribe to ad-free versions of Max and Paramount+ through Prime Video Channels.
Discussions are still in the early stages, and it’s unclear when or if the ads will actually appear on Prime Video. But if they do, it would be a significant move for Amazon as it looks to expand its streaming business.
https://www.entrepreneur.com/business-news/amazon-might-soon-be-playing-ads-on-prime-video/453747
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