Ad-Supported Amazon Prime Video Tier May Not Be Any Cheaper

Amazon is in discussions to introduce an an ad-supported tier to its Prime Video streaming service, but a price cut for subscribers isn’t guaranteed.

As The Wall Street Journal(Opens in a new window) reports, people familiar with the matter claim Amazon is trying to work out the best way to introduce ad breaks into its library of premium streaming content.

One option under consideration is to show ads to existing Prime Video subscribers and then ask them to pay more if they don’t want to see them—an upselling technique already used by the company(Opens in a new window) back in January to push users to pay for Amazon Music Unlimited. The following month, the price of a Music Unlimited subscription increased.

Alternatively, Amazon could decide to introduce a cheaper subscription tier like rival streaming services such as Netflix and Disney+ did. Currently, Prime Video costs $8.99 a month, or is bundled as part of the $14.99 a month Prime membership. Netflix with ads costs $6.99 a month, while Disney+ with ads is $7.99 a month. With Amazon’s pricing so close to those ad-supported options, it becomes clear why an upsell to subscribers is potentially on the cards.

Advertisers are understandably eager for Amazon to allow ads to be shown around its premium content, but Amazon has yet to make a firm decision and declined to comment when asked by the Journal. It’s also important to point out that Amazon is keen to secure more sports content for its streaming service, which already includes ads and product placements.

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