Don’t get too used to watching your Amazon Prime content ad-free. According to a post in the Wall Street Journalthe company is considering adding an advertising layer to its streaming service.
Amazon is looking for ways to increase revenue in its entertainment business, which has seen better days. Earlier this year, the online giant began the largest layoffs in the company’s history.
Amazon isn’t alone in its streaming woes. The industry has been facing a slowdown for months as new sign-ups decrease and consumers stop service due to economic challenges.
Amazon isn’t the only streamer considering ad-tier models, either. Hulu, Netflix, and Disney have all gone down this path.
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Why ads?
Amazon’s ad revenue has been a bright spot in an otherwise bleak economic landscape. Advertising revenue rose to $9.5 billion in the first quarter, up 21% year-over-year, making executives more optimistic about building that sector of their company.
In addition, WSJ reports that advertisers are hungry for access to Amazon’s premium movies and shows, such as The Marvelous Mrs. Maisal and the James Bond movie No Time Die.
Meanwhile, Amazon is in talks with Warner Bros. Discovery and Paramount Global to add their streaming services’ ad-supported tiers to Prime Video Channels. This allows users to subscribe to these services through Prime Video and watch their content through the Prime Video app. Currently, users can subscribe to the 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 ads will actually appear on Prime Video. But if they do, it would be an important step for Amazon as it looks to expand its streaming business.
