LANSING, Mich. (Michigan News Source) – Amazon may be changing the makeup of its Prime Video streaming service as it hopes to expand its ad business by adding an advertising supported level of the service. 

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Ad revenue has been a continued area of growth for Amazon, raking in $9.5 billion in the first quarter.  It is also third in line, behind Google and Meta as the largest recipient of digital ad revenue according to Insider Intelligence. 

Advertisers say they are eager to have Amazon offer an ad tier for Prime Video service, which would follow similar moves by other streaming platforms including Netflix and Disney, said the Wall Street Journal.  They also said that the ad buyers want more access to premium movies and programs that have remained largely free. 

There have already been smaller moves towards this with some of the sport coverage on the platform featuring ads and product placement advertising.  However, the basic Prime Video is available to anyone who pays the roughly $15 per month Amazon Prime Members, or just for the Prime Video at roughly $9.00 a month. 

According to the Wall Street Journal, some familiar with the situation have said that an option Amazon may be considering would be to bring more advertising to existing Prime subscribers and give them an option to pay more for an ad-free alternative and other features. However, the company is planning for the ad breaks to be short. 

As of now it has not shored up plans, and have not yet decided to move forward with the ad tier, according to those familiar with the situation.  

Some executives have recently weighed in on increasing profitability for the company which could come from the revenue generated from an ad tier.  Last year alone, the company spent roughly $7 billion on Amazon originals, live sports programming, and licensed third-party video content included with Prime according to Chief Financial Officer Brian Olsavsky.  Chief Executive Andy Jassy has also been more focused on greater profitability through the Prime aspect of the company. 

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Amazon Prime Student membership is discounted, costing just less than $8.00 per month, for a total of $69 per year.  The membership for those in school also comes with other perks such as a free 2 month trial of Kindle, special discounts on textbook and etextbook rentals, and other perks.  There is no word yet whether the ad tier would also impact those with this unique membership. 

Amazon’s gross profit for the quarter ending March 31, 2023 was $59.7 billion, a 19.27% increase year over year, while the twelve month gross profit on the same date was $234.8 billion according to a study.