Amazon is reportedly planning an ad-supported tier for Prime Video. Originally launched in 2006, the service has evolved and expanded over time into one of the top streaming platforms alongside Netflix and Disney+. Prime Video offers a combination of original shows like The Lord of the Rings: The Rings of Power and The Marvelous Mrs. Maisel, sports like NFL Thursday Night Football games, and due to Amazon’s acquisition of MGM, an expansive library of movies.
Now, Prime Video may become cheaper for subscribers with the option of an ad-supported tier. According to The Wall Street Journal, Amazon is reportedly planning to launch an ad-supported option for their Prime Video streaming service, “according to people familiar with the situation.” The discussions, which have been ongoing for the past several weeks but are still in the early stages, are taking place as Amazon looks to increase its ad revenue and cut costs, resulting in tens of thousands of layoffs.
Amazon’s plan to launch an ad-supported tier of Prime Video is a clear attempt to keep up with its top competitors, Netflix and Disney+, which have already made similar moves. Netflix launched an ad-supported plan in late-2022 for the price of $6.99 per month, but due to some licensing issues, a few select titles are unavailable through the cheaper option. In response, Disney+ also launched an ad-based plan for a slightly higher price of $7.99 per month.
It’s unclear how much Prime Video’s ad-supported tier will cost per month since Amazon is still in the early stages of discussing the option, though it will likely be close to its competitors. With Amazon Prime currently costing $14.99 a month for a full membership or $8.99 a month for the Prime Video streaming service alone, the ad-supported tier is undoubtedly an alternative that many existing and new customers will opt for, such as in the case of Netflix and Disney+ subscribers.