In a bid to strengthen its position in the entertainment industry, Amazon.com, Inc. (NASDAQ: AMZN) is reportedly gearing up to launch an advertising-supported tier for its popular Prime Video streaming service. This move comes as streaming platforms like Netflix, Inc. (NASDAQ: NFLX) and Disney have already implemented similar strategies to support their content expenses amidst an intense battle for market dominance.
Sources, which remain anonymous, shared this exciting development with The Wall Street Journal on Wednesday.
The inclusion of an ad-supported tier aims to enhance the growth of Amazon’s entertainment sector. Moreover, it presents an opportunity for the company to generate additional revenue while offering more affordable options to its viewers.
Moreover, the reports suggest that Amazon is in discussions with Warner Discovery and Paramount Global to include ad-based tiers of their streaming services through Amazon’s Prime Video channels.
The news of Amazon’s plans resulted in a significant surge in stock prices for Warner Bros. Discovery, Inc. (NASDAQ: WBD) which saw an increase of over 7%, and Paramount Global (NASDAQ: PARA) with a rise of more than 6%. On the other hand, Amazon’s stock experienced a 3% decline.
The Wall Street Journal reached out to Amazon, Paramount, and Warner Bros. Discovery for comment, but they declined to provide any statements.
