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Don’t get too used to watching Amazon Prime content without commercials. According to reports of wall street journalthe company is considering adding an advertising layer to its streaming service.
Amazon is looking for ways to boost revenue from its thriving entertainment business. Earlier this year, the online giant launched the biggest layoffs in its history.
Amazon isn’t the only company in streaming trouble. The industry has faced a downturn in recent months as new contracts fall and consumers cut back on services due to economic hardships.
And Amazon isn’t the only streamer considering an ad-tier model. Hulu, Netflix, and Disney have all followed this path.
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Why are there ads?
Amazon’s ad revenue is a bright light in an otherwise depressing economic climate. Ad revenue rose 21% year-over-year to his $9.5 billion in the first quarter, and management has become even more bullish on building business in that space.
The WSJ also reported that advertisers are starving for access to Amazon’s premium movies and shows, including “The Marvelous Mrs. Maysal” and the James Bond movie “No Time Dies.”
Meanwhile, Amazon is in talks with Warner Bros. Discovery and Paramount Global to add an ad-supported layer of its streaming service to the Prime Video channel. This allows users to subscribe to these services through Prime Video and watch content through the Prime Video app. Currently, users can subscribe to ad-free versions of Max and Paramount+ through the Prime Video channel.
Discussions are still in the early stages, and it’s unclear when or if the ads will actually appear on Prime Video. But if it does, it would be an important move for Amazon as it seeks to expand its streaming business.