Months after Netflix launched a dedicated advertising-supported subscription model at a lower cost for its global audience, a report claims that Amazon Prime is currently working on advertising-supported subscriptions to enhance revenue.

The company has been having negotiations for a few weeks regarding the launch of the ad-supported option for Amazon Prime, according to the article. Amazon offers a Prime membership plan in the range of $8.99-$14.99.

According to those with knowledge of the matter, the firm is examining a variety of approaches to include adverts in Prime Video. One option would be to provide current Prime subscribers with more advertisements and the option to pay extra for an ad-free alternative and other benefits.

The report from The Wall Street Journal also says that the streaming industry has witnessed a slowdown in the number of users as the world is going through difficult economic conditions. The report also states that the company is holding discussions with Warner Bros Discovery and Paramount Global about the introduction of ad-based tiers to Prime Videos.

Amazon witnessed a 3% downfall in its shares on Wednesday due to the market getting weak.

With its Music service, Amazon has recently taken the following strategy: More songs were made available to Prime customers at no additional cost, but the option to download most songs was eliminated in favour of a more expensive upgrade.

The article stated that adding an ad tier would help Amazon cover the costs of creating its shows and movies. Brian Olsavsky, Amazon's chief financial officer, said in February that the business spent about $7 billion on Amazon Originals, live sports broadcasts, and licenced third-party video content that was made available as part of Prime last year.