Prime Video, Amazon’s popular streaming platform, is reportedly considering the introduction of an ad-supported subscription tier to attract more subscribers. The Wall Street Journal (WSJ) revealed that Amazon is exploring various options to entice potential customers. One possibility is incorporating ads into the existing $14.99/£8.99/AU$9.99 monthly Amazon Prime membership, which currently provides access to Prime Video. However, this move could upset current subscribers who may object to the introduction of ads at the current price point.
Another option being considered is introducing ads to the standalone Prime Video membership, which currently costs $8.99 per month in the US (with the same price in the UK and Australia as an Amazon Prime membership). However, users might express discontent over the intrusion of ads, particularly when comparing it to cheaper alternatives like Netflix’s Basic with Ads plan priced at $6.99/£4.99/AU$6.99 per month or Disney Plus’ US-only ads-based tier at $7.99 per month. Notably, Max’s ad-supported subscription is priced at $9.99 per month, making Prime Video’s potential offer slightly less expensive.
Amazon might also consider following the lead of Netflix, Disney Plus, Paramount Plus, and Max by creating a new tier dedicated to ads. This approach could enable Amazon to offer Prime Video at a more competitive price, making it an appealing streaming option amid the ongoing affordability crisis.
However, Amazon already has a free, ad-supported streaming service called Freevee, which provides a vast library of TV shows and films. With Freevee already available in the US, UK, and Germany, Amazon would need to carefully evaluate the need for an ad-supported tier in these regions. Introducing such a tier could potentially discourage Freevee subscribers from joining Prime Video when they can access a significant portion of Prime Video’s content for free. Furthermore, if Amazon were to shut down Freevee to encourage subscribers to switch to Prime Video, it could risk upsetting existing users and dissuading them from creating a Prime Video account.
While Amazon’s interest in an ad-supported tier is understandable from a business perspective, the existence of Freevee raises questions about the necessity of such a subscription model. Rather than forcefully pushing Freevee subscribers to switch, allowing them to independently explore Prime Video content and make their own decision to upgrade might prove more effective. By maintaining Freevee as a free alternative, Amazon can retain its user base and potentially convert them to Prime Video subscribers at their own discretion.
As the streaming landscape continues to evolve, Prime Video’s potential ad-supported tier should be weighed against the presence and success of Freevee. Ultimately, Amazon’s strategy should focus on providing a compelling value proposition for customers without alienating its existing user base.
