|
Discussions around the ad tier have been going
on for several weeks, according to the report, and follow the
launch of similar plans by rivals Netflix and Walt Disney.
The streaming industry has been facing a slowdown in new
sign-ups as subscribers struggling with high inflation and
interest rates dial back entertainment spending and other
discretionary expenses.
The WSJ report also said Amazon was holding discussions with
Warner Bros Discovery and Paramount Global about adding the
ad-based tiers of their streaming services through Prime Video
Channels.
Warner Bros Discovery and Paramount did not immediately respond
to Reuters' requests for comment, while Amazon declined to
comment.
Shares of Amazon were lower more than 3% on Wednesday, in line
with a weak broader market.
"In recent years, Prime Video has gotten more aggressive about
running promos prior to its shows and including ad-filled sports
broadcasts," said Ross Benes, Insider Intelligence principal
analyst.
Sports coverage on Prime Video already comes with ads.
"Officially putting ads into Prime Video allows Amazon to
centralize its audience and be more consistent with branding,"
Benes added.
(Reporting by Yuvraj Malik and Samrhitha Arunasalam in
Bengaluru; Editing by Devika Syamnath)
(Photo: The logo of streaming service Amazon Prime Video is seen
in this illustration picture taken March 5, 2021. REUTERS/Danish
Siddiqui/Illustration)
[© 2023 Thomson Reuters. All rights
reserved.] This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.]
|
|
