While Amazon (AMZN) -) Prime may have more subscribers than it ever has before (180.1 million as of 2023), its latest pricing change has angered more than a few customers.
That pricing change is about Prime Video, its streaming media service. Amazon Prime subscribers typically get access to the service as a part of their $139 a year membership perks, or those who want it without subscribing to Amazon Prime previously paid $8.99 a month.
Related: Streaming your favorite shows got more expensive everywhere in 2023
But Amazon sent out a UK email informing subscribers that movies and TV shows on the service would start to have advertisements as of Feb. 5. If users do not want to see those ads, they'll need to sign up separately for an ad-free tier, which will cost an additional £2.99 a month.
On Jan. 3 #AmazonPrime was trending on X, with more than 3,000 people tweeting about the change and many vowing to cancel their memberships.
Hi #AmazonPrime .
— Huw Jelly 💛💙 (@humongous_huw) January 3, 2024
I note that you've increased your prices for ad-free service by 30%.
Please note that we will be cancelling our subscription.
I hope all of you involved in this decision have a shitty year.
You're welcome. 👍 pic.twitter.com/ewHOOHyU4m
Time to cancel #AmazonPrime.
— S A M A N T H A 🌷🌻 (@samting71) January 3, 2024
I paid it initially to get next day deliveries (which rarely happen) and to watch stuff.
Most of the shows now u need to pay for on top of the monthly subscription and now they're pushing for more 🤔
So I'm out 🖐
Hugely disappointed with #AmazonPrime literally just renewed my annual membership at an increased cost) only to now be told that what I thought I would get from Prime Video has now been “downgraded” to the ad version. It’s another £36 per yr to get what I thought I signed up for?
— DF (@fantom_dave) January 3, 2024
However, the announcement is not brand new — only new to UK subscribers. In the U.S., Amazon announced its intent to make the change in late December, with a start date of Jan. 29 and a charge of $2.99 to get rid of ads. Customer reaction was similar, with many saying they planned to cancel memberships or had already done so.
Amazon is betting big on the change despite consumer discontent, as its part of a strategy that the company saw success with in 2023. While what it makes from subscriptions is modest in comparison to the revenue it rakes in from its online store, Prime Video is a strategy play, securing a spot for Amazon in the ever-changing streaming landscape.
Ad-supported services have been big business in the streaming sector in the last few years, with most of the big names hiking prices in 2023, including Netflix, Apple, YouTube Premium, Max, and Peacock.
The cost of Amazon Prime has steadily gone up since its launch in 2005 for $79 a year. Prime Video was added in 2011 and by 2014, the annual price of the service had risen to $99. Amazon has continued to add more perks to the service since then, including Prime Free One-Day, Amazon Fresh, and Prime Gaming. The service now costs $139 if you pay for a year up front, or $14.99 a month .
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