Amazon.com Inc (NASDAQ:AMZN) is reportedly looking to generate more revenue from its Prime Video streaming service by offering a cheaper subscription supported by advertising, similar to the plans launched by Netflix and Disney last year.
Building on some of its existing shows already being supported by product placement, the tech giant is in the early stages of working on the new tier, according to the Wall Street Journal.
Talks over several weeks have reportedly been encouraged by eager advertisers who want to tap into the more popular films shown on the platform.
The Seattle-based group was also said to be in talks with film studios Warner Bros, Discovery and Paramount about its plans for ad-supported subscriptions through Prime Video Channels, where customers can already subscribe to advert-free streaming services.
Amazon Prime Video is currently on offer at US$8.99 per month in the US.
Last November, Netflix launched its ad tier at US$4.99 and in its most recent update revealed it had been taken up by 5mln monthly users, representing just over 2% of its total 232.5mln subscribers.