Is MGM+ About to Convert to Ad-Supported Streaming Like Prime Video Did?
Amazon is looking to increase the amount of streaming ads it offers, and its streaming platform MGM+ could be next to see ads invade its interface.
As streaming services go, MGM+ tends to skate under the radar a bit. The streamer is owned by Amazon, but is typically an afterthought when discussing that company’s other streaming platforms like Prime Video, Freevee and even Twitch. In fact, during Amazon’s conference call with Wall Street analysts to discuss its quarterly earnings report, MGM+ was not even mentioned by Amazon executives. Nevertheless, subscribers would be smart to anticipate big changes to the streamer in the near future, specifically in its decision to thus far not to include ads on the platform.
- Amazon CFO Brian Olsavsky told analysts his company wants to increase advertising in its streaming properties.
- Prime Video converted all customers to ad-supported unless they pay to go ad-free on Jan. 29.
- MGM+ will almost certainly follow the same pattern in a matter of weeks or months.
Is MGM+ Going to Incorporate Ads?
Currently, there is only one tier of MGM+. It costs $5.99 per month, and streams thousands of titles, from Paramount movies like “Teenage Mutant Ninja Turtles: Mutant Mayhem” and “Top Gun: Maverick,” as well as original series like “Beacon 23” and “Belgravia: The Next Chapter and more. All of these titles currently stream with no commercial interruptions.
That state of affairs could change any day, however. Amazon chief financial officer Brian Olsavsky spoke to analysts during his company’s earnings call on Thursday and indicated that Amazon wanted to bring more streaming advertising to its platforms, even though it converted all Prime Video customers to ad-supported — unless they paid an extra $2.99 per month — on Jan. 29.
“Advertisers are excited to access our Prime customer base,” Olsavsky said when asked about the new Prime Video arrangement. “We are looking for ways to increase our advertising in our streaming properties, including Fire TV, and Prime Video, but also things like Freevee and Twitch.”
Again, MGM+ was not mentioned in Olsavsky’s calculations, but his plain statement that Amazon wanted more streaming ads would seem to indicate it’s only a matter of time before MGM+ gets an ad-supported plan as well. As of now, it’s the only completely ad-free streaming property owned by Amazon, and the company’s desire to build its streaming ad inventory plainly points to that changing on the service.
When Will MGM+ Convert to Ad-Supported Streaming?
We at The Streamable believe that when Amazon does decide to bring ads to MGM+, it will do so in a fashion similar to Prime Video’s tactics. That is, current customers subscribing at the $5.99 level will all be converted to ad-supported, while a new ad-free tier that costs more money will be introduced.
It’s impossible to say for sure when that will be, but there will likely be advanced warning. Prime Video informed subscribers more than four months before rolling out ads on the service that they were coming, and gave more than 30 days notice once a date for the introduction of ads was actually announced.
It’s unlikely to be a long wait for MGM+ subscribers, however. Amazon is likely pausing just long enough to ensure that Prime Video doesn’t see a huge cancel reaction from its introduction of ads before moving forward, and once they’re assured customers won’t leave in droves, the ads will come to MGM+. It could be just a matter of weeks before that happens, but in The Streamable’s expert opinion, MGM+ will have an ad plan before 2024 is out.
MGM+
MGM+ is a video streaming service that features original TV shows like the Emmy-winner “Godfather of Harlem,” the romantic adventure “Billy the Kid,” the contemporary sci-fi horror thriller “FROM,” and dramas “Rogue Heroes” and “Belgravia.” The service also has a library of Hollywood movies. This same service was previously called EPIX NOW.