Discussions around the ad tier have been going on for
several weeks, according to the report, and follow the launch of similar plans
by rivals Netflix and Walt Disney.
The streaming industry has been facing a slowdown in new
sign-ups as subscribers struggling with high inflation and interest rates dial
back entertainment spending and other discretionary expenses.
The WSJ report also said Amazon was holding discussions with
Warner Bros. Discovery and Paramount Global about adding the ad-based tiers of
their streaming services through Prime Video Channels.
Warner Bros. Discovery and Paramount did not immediately
respond to Reuters' requests for comment, while Amazon declined to comment.
Shares of Amazon were lower more than 3 percent on
Wednesday, in line with a weak broader market.
"In recent years, Prime Video has gotten more
aggressive about running promos prior to its shows and including ad-filled
sports broadcasts," said Ross Benes, Insider Intelligence principal
analyst.
Sports coverage on Prime Video already comes with ads.
"Officially putting ads into Prime Video allows Amazon
to centralize its audience and be more consistent with branding," Benes
added.
It was previously reported that Amazon Prime Video
subscribers will reportedly start seeing Amazon miniTV content on the platform
as well. This is said to broaden its reach beyond the default Amazon shopping
app. The integration is currently being beta tested on select paid accounts,
with a full rollout expected ‘soon', as per the report. © Reuters