Amazon announced to customers in September 2023 that ads will become a part of the Prime Video experience in 2024. The online retail giant put a date on that promise in an email sent to customers. The company also noted that users must pay extra for an ad-free experience, causing outrage.
“Starting January 29, Prime Video movies and TV shows will include limited advertisements,” the email read. “This will allow us to continue investing in compelling content and keep increasing that investment over a long period of time.”
The email continued, “We aim to have meaningfully fewer ads than linear TV and other streaming TV providers.” In addition, Amazon indicated in the email that there will be no change to the price of Prime membership. However, the mail noted that customers can sign up for an ad-free subscription for an extra $2.99 monthly.
The announcement from Amazon comes after it pushed a price hike in May 2023 for its Prime subscription service. The price increased from $6.99 to $9.99 monthly because the company claimed to have expanded Prime member benefits. Therefore, the recent email came as a shock to users.
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“For new Prime members, the price change will go into effect on May 24, 2023,” Amazon wrote in a previous email sent to customers on May 2, 2023. “For current Prime members, the new price will apply from June 28, 2023, on the date of their next renewal.”
Following the announcement, many users on X took to the social media platform to air their frustrations with Amazon. They criticized Amazon for the new change, with some users claiming they would jump ship from Amazon Prime altogether.
To many users, the change seems like a constant cash grab with the continuously rising prices. Also, users didn’t like the additional charge to experience the platform how they had previously been able to for free. As a result, they questioned the service providers.
In addition, Amazon Prime users questioned whether or not they wanted to keep their subscriptions. Many cited being unhappy about the frequent rise in prices and the additional charge of $2.99 to be ad-free. Viewers claimed that the platform charges them for specific shows and movies.
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Many alleged that Amazon charges them to rent or buy movies or shows aside from their monthly fee. Besides, users argued that one of the benefits of streaming platforms has always been that there were no commercials, as opposed to regular cable TV.
As Amazon starts implementing ads into Prime Video service, the online retail giant has recorded increased ad revenue. The company’s revenue from third parties and other programs has increased significantly, according to its third-quarter earnings in 2023.
The company brought in $12.06 billion in ad revenue during last year’s third quarter. Notably, it is an increase of 26% compared to the same period in 2022. In addition, Amazon reported that it generated $143.1 billion from net sales during the third quarter. Similarly, that was a 13% increase from what it brought in during the same quarter in 2022.
Amazon’s decision comes in response to the trend among rival streaming services. Like the platform, other streaming platforms consistently increase subscription fees across all tiers. Also, they are incorporating ads into their least expensive monthly plans to raise revenue.
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