According to a Wall Street Journal report based on close sources, Amazon is considering launching a cheaper Prime Video subscription level but with ads, allowing it to earn more and further develop its advertising business.
The discussions are at an early stage, taking place over the last few weeks as a result of cost reduction reviews in the different business areas, resulting in thousands of layoffs, as has been the case in many other technology companies.
Strengthening the advertising business
It turns out that Amazon’s advertising business is on the rise to the point of seeing a 21% year-on-year increase in the first quarter, cementing the company as the third largest advertising player in the United States, behind Google. and Meta, according to Insider Intelligence.
To this is added, according to the aforementioned report, that advertisers are eager for Amazon to offer the new subscription level with advertisements for Prime Video, thus following the path by which other on-demand content transmission platforms have reached done quite recently.
Advertisers, eager for the new plan to arrive
And it is that for them it is quite tempting to access content that until now has been kept safe from advertisements but which can generate a lot of impact. In this sense, the idea revolves around the arrival of short-term advertising breaks, although at the moment the duration of the breaks for hours of content is unknown or what price the new subscription level would have.
In addition, it must be taken into account that Amazon also has Freevee, its free platform with advertising, on which it is increasing its content offer, including content that it already offers without advertising within Prime Video.
It is sought that other platforms also offer their levels with advertising
And continuing with Prime Video, users can include subscriptions to other platforms within this service.
In this sense, Amazon is also working so that Warner Bros. Discovery and Paramount can also bring their levels with advertising within Prime Video, being in talks about it.
And if that were not enough, Amazon would be considering obtaining the broadcast rights to the National Basketball Association games as soon as the current contract expires in 2025, thus improving its sports content offer.
More information: Wall Street Journal