Prime Video with advertising: $6,8 billion in extra revenue expected for Amazon

As of today, the “Prime Video” film and series streaming included in Amazon’s Prime subscription is no longer ad-free. In addition to the free freevee-Offer is now also shown in Prime Video advertising. If you don't want that, you can buy your way out of advertising for an additional 2,99 euros per month. Amazon is expected to generate up to $5 billion in advertising revenue annually. A further $1,8 billion is expected to be raised through the ad-free additional subscription. At the same time, Stiftung Warentest believes that the changes are unlawful because they are equivalent to a regular price increase, but are marketed like an additional offer.

As of today, Prime Video is only available with advertising. At least if you don't get rid of it for an additional €2,99 per month. Amazon is said to be able to rake in up to $6,8 billion more per year. But maybe the whole thing is illegal (in this country).
As of today, Prime Video is only available with advertising. At least if you don't get rid of it for an additional €2,99 per month. Amazon is said to be able to rake in up to $6,8 billion more per year. But maybe the whole thing is illegal (in this country).

Email announcement a month ago

I received an email from Amazon on January 3, 2024 with the subject “Change to Prime Video.” If you also had an active Prime subscription at the time, then you probably received such an email around this time. It says, among other things:

We're writing to you today to let you know about an upcoming change to Prime Video. Starting February 5th, titles on Prime Video will contain limited advertising. This allows us to continue investing in top entertainment and live sports content and increase this investment in the long term. Our goal is to show significantly less advertising than traditional television networks and other video streaming providers. There is no need for you to take any action and the current price of your Prime membership will not change. We will also offer a new ad-free option for an additional €2,99 per month [...]

Bank of America analysis: Amazon's revenue could rise dramatically

As announced in the email, Amazon wants to increase its revenue from Prime Video by integrating advertising and offering free purchases of several euros per month. Bank of America assumes that these efforts will be worthwhile for Amazon. Advertising revenue of up to $5 billion per year could result.

It is also expected that many users will opt for the additional ad-free costs. This is expected to raise up to $1,8 billion annually. In North America, the change took effect on January 29, 2024. So far, advertising on Amazon only accounts for around 8,5% of revenue. This will probably change in the long term (Which).

Advertising on Amazon Prime Video: Sample contradiction from Stiftung Warentest

As already shown in the newsreel on Friday, so you don't necessarily have to put up with the changes to the Prime Video offering. Stiftung Warentest calls these e.g. B. “Advertising without a legal basis” and provides explanations in this article period.

The deterioration of the offer due to advertising breaks and the costs of 2,99 euros per month to restore the original condition are seen as a disguised price increase. This is only possible with the consent of the customer. In the article you will find a sample letter for objecting to the changes. You can download this as an .rtf file, adapt it and send it.

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