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The news:;Amazon is reportedly planning to launch an;ad-supported tier;for its Prime Video streaming service, joining the likes of;Netflix;and;Disney, according to the WSJ. Background:;Amazon is in the early stages of discussions, so details on pricing and launch date are not yet available. Prime Video is part of Amazon Prime, which costs $15 per month or $139 per year, or can be subscribed to separately for $9 per month. Amazon already has ad-supported streaming experience with Amazon Freevee (previously IMDb TV), a free streaming service supported by limited ads. What the numbers say:;Netflix has seen relative success with its own ad-supported tier, which gained almost;5 million;monthly active users within six months of its launch. Over 25% of new signups in eligible countries opt for the ad-supported option, according to;co-CEO Greg Peters. Why it matters:;By introducing an ad-supported subscription option, Amazon aims to attract more subscribers and compete with rivals. The tier could boost Amazon's revenue as the streaming industry experiences;a slowdown;in new sign-ups. According to Insider Intelligence, Amazon is the third-largest player in digital ad revenue in the U.S., trailing Google and Meta. Amazon generated;$9.5B;in ad services revenue last quarter, up 21% YoY.
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