https://www.wsj.com/articles/amazon-plans-ad-tier-for-prime-video-streaming-service-8944fe51?mod=latest_headlines
Amazon is planning to launch an advertising-supported tier of its Prime Video streaming service as it looks to further build its ad business and generate more revenue from entertainment, according to people familiar with the situation.
The discussions, which the people said are in the early stages and have been going on over the past several weeks, come in the wake of cost-cutting reviews across the company’s businesses,
resulting in tens of thousands of layoffs.
Advertising has been an area of continued growth for Amazon despite macroeconomic challenges. The company’s ad revenue was $9.5 billion in the first quarter, up 21% year over year. The company is the third-biggest player in terms of digital ad revenue in the U.S. after Google and
Meta, according to Insider Intelligence.
Advertisers say they are eager to have Amazon offer an ad tier for Prime Video service, which would follow similar moves by other streaming platforms including Netflix and Disney. Specifically, ad buyers say they want more access to premium movies and programs that have remained largely ad free, content that often garners more buzz.
