Amazon planning to introduce ad tier for prime video streaming report

The Wall Street Journal reported Wednesday that Amazon.com is planning to launch an ad-supported tier of its Prime Video streaming service. As per the report, discussions around the ad tier have been going on for several weeks. The streaming industry is facing a slowdown in new sign-ups as subscribers grappling with high inflation and interest rates reduce entertainment spending and another discretionary spending.
The WSJ report also stated that Amazon was in discussions with Warner Bros. Discovery and Paramount Global about adding ad-based tiers to their streaming services through Prime Video channels.
Amazon shares were down more than 3 percent on Wednesday, in line with a weak broader market. Ross Benes, principal analyst at Insider Intelligence, said, "In recent years, Prime Video has been paying more attention to running promos before its shows and advertising sports broadcasts. Sports coverage on Prime Video already comes with commercials.
"Officially putting advertising into Prime Video allows Amazon to centralize its audience and be more consistent with its branding," Benes said. It was earlier reported that Amazon Prime Video subscribers will reportedly start watching content from Amazon MiniTV on the platform as well.
It is said to broaden its reach beyond the default Amazon Shopping app. As per the report, the integration is currently being beta tested on select payment accounts, with a full rollout expected soon.