Amazon plans ad-supported tier for Prime Video streaming service: report
By Jon Swartz
The discussions are in early stages, according to the report
Amazon.com Inc. is the latest streaming giant eyeing an advertising-supported service.
The e-commerce behemoth (AMZN) behind Prime Video is planning to take the plunge following similar moves by Netflix Inc. (NFLX) and Walt Disney Co. (DIS) in a move to build its ad business, the Wall Street Journal reported Wednesday, citing people familiar with the matter.
The discussions are in early stages and are ongoing, according the report. The company is discussing several ways to have ads in Prime Video, including giving Prime subscribers an option to pay more for an ad-free version.
Amazon was not immediately available for comment.
Amazon, which is in the midst of a cost-cutting frenzy that has led to thousands of layoffs, reported ad sales of $9.5 billion in its fiscal first quarter, an increase of 21% year over year. The company ranks No. 3 in digital-advertising revenue in the U.S., behind Alphabet Inc.'s (GOOGL)(GOOGL) Google and Meta Platforms Inc. (META), according to market researcher Insider Intelligence.
Shares of Amazon are down more than 3% in early-afternoon trading Wednesday.
Claudia Assis contributed.
-Jon Swartz
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06-07-23 1328ET
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