Amazon Prime Video with advertising - financial expert explains alternatives and legal discussions

Amazon Prime Video with advertising - financial expert explains alternatives and legal discussions

According to a report by www.heise.de,
As of February 2024, Amazon Prime Video is no longer ad-free. Advertisements that are between 30 seconds and 2 minutes long will now be shown during a movie or series. The article explains how users can avoid or switch off advertising, for example by taking out a paid additional subscription. The legality of this approach is currently being debated.

The introduction of advertising on Amazon Prime Video can have a significant impact on the market and consumers. On the one hand, this can lead to subscriber dissatisfaction and, in the long term, to a migration to other streaming services such as Netflix, Disney + or AppleTV. Consumers could also be encouraged to choose alternative subscription models with advertising to save costs. For Amazon, this could mean they may earn less revenue from subscription fees as users switch to ad-supported subscriptions.

The introduction of advertising on Prime Video may also impact Amazon's overall marketing strategy. It could lead to a change in the perception of Amazon as a premium brand and influence brand loyalty. The decision to cancel Prime subscriptions could also result in consumers losing other Prime benefits such as Prime Music, Prime Gaming and free shipping, which in turn could impact Amazon's entire ecosystem.

Overall, it remains to be seen how the introduction of advertising on Prime Video will impact the market and consumers in the long term. It remains a challenge for Amazon to find the right balance between advertising revenue and subscription fees while maintaining subscriber satisfaction and loyalty.