Amazon Might Soon Be Adding Ads to Prime Video The company wants to generate more ad revenue for its streaming service.

By Jonathan Small Jun 8, 2023

Don't get too used to watching your Amazon Prime content commercial-free. According to a report in the Wall Street Journal, the company is considering adding an ad tier to its streaming service.

Amazon is looking for ways to boost revenue in its entertainment business, which has seen better days. Earlier this year, the online giant initiated the most extensive layoffs in the company's history.

Amazon isn't alone in its streaming woes. The industry has been facing a slowdown for months, as new signups are down and consumers are cutting service due to economic challenges.

Amazon also isn't the only streamer considering ad-tier models. Hulu, Netflix, and Disney have all gone down this path.

Why ads?

Amazon's ad revenue has been a bright spot in an otherwise dreary economic landscape. Ad revenue grew to $9.5 billion in the first quarter, up 21% yearly, causing executives to be more bullish about building that sector of their business.

In addition, WSJ reports that advertisers are hungry to access Amazon's premium movies and programs, such as The Marvelous Mrs. Maisal and the James Bond flick No Time Die.

Meanwhile, Amazon is in talks with Warner Bros. Discovery and Paramount Global to add the ad-supported tiers of their streaming services to Prime Video Channels. This would allow users to subscribe to these services through Prime Video and watch their content through the Prime Video app. Currently, users can subscribe to the ad-free versions of Max and Paramount+ through Prime Video Channels.

The discussions are still in the early stages, and it is unclear when or if ads will actually appear on Prime Video. But if they do, it would be a significant move for Amazon as it seeks to expand its streaming business.

Jonathan Small

Entrepreneur Staff

Founder, Strike Fire Productions

Jonathan Small is a bestselling author, journalist, producer, and podcast host. For 25 years, he has worked as a sought-after storyteller for top media companies such as The New York Times, Hearst, Entrepreneur, and Condé Nast. He has held executive roles at Glamour, Fitness, and Entrepreneur and regularly contributes to The New York Times, TV Guide, Cosmo, Details, Maxim, and Good Housekeeping. He is the former “Jake” advice columnist for Glamour magazine and the “Guy Guru” at Cosmo.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Most Popular

See all

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

By Peter Diamond

Franchise 500 Annual Ranking

50 Franchise CMOs Who Are Changing the Game

Get to know the industry's most influential marketing power players.

By Jeff Cheatham

Thought Leaders

6 Tips From a Clean Beauty Entrepreneur

Sarah Biggers went from a newbie in the natural beauty space to a pro in just a few years. Here are six things she wishes she'd known at the beginning.

By Sarah Biggers

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

By Amanda Breen

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

By Cynthia Kay

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

By Ben Angel