The golden years of streaming seem to be over and the industry has been faced with falling user numbers and high cost pressure for some time now. After Netflix tried to subsidize a reduced membership fee with additional advertising a year ago, Amazon is now indirectly following suit with a similar model.
Amazon Prime incl. Video will continue to cost €8.99 per month or €89.90 per year, but shows and films on the streaming portal will only be available with advertising from the start of 2024. Anyone who wants to watch ad-free from February 5 will have to pay an additional 2.99 euros per month. The corresponding option can already be activated on Amazon.
From February, Amazon Prime Video will only be available without advertising for an additional charge
In our eyes, such actions seem somewhat desperate and prove above all that the major streamers do not give top priority to unadulterated enjoyment of films and series for their users. In other words, advertising is seen as a means of exerting pressure on consumers in order to worsen the quality of their own programs for all those who do not want to pay more.
For occasional viewers, the 33% surcharge is unlikely to be particularly tempting. An alternative offer - such as being able to watch a movie on demand ad-free for 99 cents - would be much more attractive in our eyes, but certainly less profitable.
We think that the additional 2.99 euros for ad-free Amazon Prime Video will mean that the majority of viewers will put up with the advertising. This will reduce the perceived quality of the Amazon streaming service because it will be more reminiscent of free TV or YouTube with advertising.
Competitor Netflix has already gained around a year's experience with a subscription model that is discounted by advertising, which 
now knows a lot about special forms of advertising. This confirms the certainty that freedom from advertising will come at an even higher price in the future.
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