Amazon isn’t the only streaming platform that is dreaming about ad money from streaming. Netflix launched its own affordable ad-supported tier not long ago, serving the Basic With Ads plan at $6.99 per month, down from the regular plan that costs north of $15 each month. Disney+ also has an ad-supported subscription that costs $6.99 per month. Hulu, Discovery+, Paramount+, and HBO Max have all experimented with ad-supported tiers.
The primary goal of pushing ads is to absorb the cost of ambitious TV shows like “The Lord of the Rings: The Rings of Power” and “The Wheel of Time,” both of which cost hundreds of millions of dollars to produce after securing their media rights. Of course, Amazon also needs the funds to make more high-end shows, as rivals like Netflix and Apple are increasingly making their presence felt on the film festival circuit and continue to rope in A-list actors for their streaming banners.
Another reason that Amazon may want an ad-supported tier for Prime Video is to cope with the recent structural reorganization which involved laying off over 18,000 employees in a single calendar year. However, these are said to be preliminary internal discussions and plans to offer an ad-supported class of Prime Video might also be nixed.
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