Amazon has denied rumours that the retail giant is working on a freemium, ad-supported version of its Prime Video streaming service.
AdAge’s report indicated that Amazon has plans to offer an ad-supported version of the video streaming service for non-Prime members. The publication also stated that Amazon aims to share audience information and ad revenue in order to bolster the platform’s free tier at launch.
From a content perspective, an ad-powered version of Amazon Prime Video would be popular with both advertisers and content creators given it has the potential to reach a much wider audience, and because in some ways, it adopts the same advertising format as traditional television.
The online retail giant, however, has adamantly denied these claims, releasing a statement to multiple publications, saying that it has “no plans to create a free, ad-supported version of Prime Video.”
Amazon Prime Video is currently priced $79 per year in Canada, whereas in the U.S. the service comes in at $99.
Despite its higher price tag, the U.S. version of Prime Video has added value since it also includes a subscription to Amazon’s music streaming platform. In Canada, a Prime subscription includes access to Amazon’s video platform as well as expedited shipping options and Prime-specific deals.
Amazon Prime Video officially launched in Canada back in December 2016, giving Canadians access to Amazon-exclusive shows like the Man in the High Castle and Transparent.