By Sahil Patel Aug. 27, 2019 4:14 pm ET Amazon.com Inc. is steadily increasing its investment in IMDb TV, its ad-supported streaming service for on-demand movies and television shows, as consumers suggest that there is room for alternatives to ad-free subscription video.
The company has also begun offering to pay an upfront license fee for some type of exclusivity, moving past IMDb TV’s initial focus on only sharing ad revenue for compensation, the people said. For some content owners, upfront fees are more attractive because they guarantee a fixed payment. Pure revenue-sharing deals and hybrid deals that mix a fee with revenue-sharing are available as well.
The push for more ad-supported streaming video comes as the subscription-based option gets crowded. Established ad-free services, such as Netflix, Hulu and Amazon’s Prime Video, are set to contend with Walt Disney Co. ’s Disney+ and WarnerMedia’s HBO Max, both of which are on the horizon.
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