Amazon can join Netflix and Disney by launching Prime Video subscription with ads. According to the newspaper Wall Street magazine the tech giant will be looking increase income a company with a promotional variant of its streaming service. While negotiations are in their early stages, advertisers are interested in the idea.

The idea for Prime Video with ads came about as a result of cost cuts in various areas of the company, sources close said. Amazon, like Meta, Microsoft, and other tech companies, has made adjustments to its strategy, resulting in thousands of layoffs. With the introduction of this service, the company will bring together one of the fastest growing areas: advertising.

Amazon has invested hundreds of millions of dollars in exclusive content for Prime Video. The company bought the rights to produce the series The Lord of the Rings: Rings of Power and recently entered into an agreement with the Embracer Group to move tomb Raider to a small screen. amazon plans for a Lara Croft franchise it would be as ambitious as the Marvel Cinematic Universe.

It was products of this caliber that attracted the attention of advertisers. The report mentions that ad buyers want more access to movies and series. premium They were saved without ads. The only shows with ads are NFL games, which air on Thursdays.

How Prime Video will work with ads

Although the implementation of ad-supported subscription is in its early stages, Amazon is considering different scenarios. The company could insert ads into programs and offer current users an ad-free Prime Video option. The latter will be very similar to what we see with Amazon Music and its Prime and Unlimited plans.

The tech company already has experience with Freevee, an ad-supported streaming service that includes part of the Prime Video catalog. Although he has important series and films, none of them can compare to his older brother. Another downside is that Freevee is only available in the US, UK and Germany.

Amazon doesn’t want to miss the opportunity to insert ads into its services, including Prime Video Channels. The company will be in talks with Warner Bros and Paramount to offer membership with ads for those who hire HBO MAX or Paramount+ in Prime Video.

For now no pricing or availability details for Prime Video with ads. Amazon is experimenting with various alternatives and does not guarantee their future use. Despite the onslaught of advertising agencies, the reality is that these “cheap” plans are not the solution to the problems companies face.

According to rumors number of users who pay for a Netflix ad plan will be from 1.2 to 1.6 million. In the case Spainresearch conducted by Kantar showed that four out of ten new subscribers Netflix chose this model. The study also showed that Prime Video is in the lead, accounting for 61.5% of new subscriptions in the last quarter of 2022.

Source: Hiper Textual

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