Amazon Prime is the latest high-profile streaming service to institute an ad-supported tier, according to an exclusive report last week in the Wall Street Journal. Streamers such as Netflix and Disney have seen positive early returns after introducing lower-cost subscriptions for viewers willing to watch ads as part of their programming.
A significant number of new subscribers have been brought onto the platform, as well as additional revenue earned from eager advertisers. Previously, Amazon had experimented with advertising-supported programs for sporting events such as “Thursday Night Football” and their free video service Freevee – formerly IMDb TV.
Now Amazon will bring ads to Prime Video as well, with CEO Andy Jazzy said to be making profitability one of his top priorities. In fact, after years of chasing market share, all the major streamers are exploring their options to increase revenue, cut costs and become profitable.
See also: A Prime Video Ad Tier Isn’t Imminent—But It Makes a Lot of Sense (Ad Week)