Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Discussions around the ad tier have been going on for several weeks, according to the report, and follows 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 pull back on discretionary spending amid challenging economic conditions.
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.
Amazon, Warner Bros Discovery and Paramount did not immediately respond to Reuters requests for comment.
Sports coverage on Prime Video already comes with ads.
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Amazon shares were more than 3% lower on Wednesday, in line with a weak broader market.