Prime Video is one of the only remaining streaming services that remains off-limits for advertisers—but that could soon change.
When it comes to streaming strategies, ad tiers are all the rage. Both Disney+ and Netflix added ad tiers in the last year, and Amazon’s own free, ad-supported platform Freevee recently proved with megahit Jury Duty that its audiences will still flock to programming with advertising.
With that context, a recent Wall Street Journal report that Amazon’s Prime Video plans to add an ad tier makes perfect sense. However, it looks like any potential ad tier may still be a ways off.
Speaking anonymously, a source familiar with the matter told Adweek that the report “surprised” Amazon and that, if an ad tier were on the way, the company would let media buyers know before that knowledge was made public. Multiple buyers also confirmed to Adweek that Amazon has not been in contact with them about a potential ad tier.
For its part, an Amazon spokesperson told Adweek, “We don’t comment on rumors or speculation.”
But just because an ad tier may be far off, that doesn’t mean it’s not a good idea.
From the Prime Video side, Amazon would be able to add an additional revenue stream during uncertain macroeconomic conditions.
Plus, a potential ad tier could have benefits for both consumers and advertisers, according to Ivy Cheung, vp and group partner of integrated investment at UM Worldwide.
“From a consumer perspective, there will be a lot more premium content that we’ll be able to watch,” Cheung said of a potential Prime Video ad tier. “And then from an advertisers perspective, I think it’s great because it just gives us the opportunity to reach viewers in different environments.”
Speaking anonymously, a buyer speculated on how a potential Prime Video ad tier might look, saying that, like most ad tiers, the product could start with 15-second and 30-second pre-roll and mid-roll ads and very little targeting, which would be in the same vein as how Netflix’s ad tier went to market in 2022.
However, unlike Netflix, which was classically ad-averse before getting into the ad-supported business, Amazon already has valuable infrastructure in place.