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Amazon unlikely to lose subscribers over Prime Video ads

In brief: Amazon’s recent decision to add commercials to Prime Video TV shows and movies is no doubt going to rub some the wrong way. Threats to cancel Prime memberships are reportedly growing on social media, but will folks actually follow through?

Humans are interesting creatures. By nature, we value exclusivity. We want to be the first to learn about a hip new trend, product, or service, and we love nothing more than to be the first to tell others about it.

Generally speaking, once the cat is out of the bag, interest starts to wane. This is where having a solid product or service really pays dividends, and you start to see companies further increase the value of their offering to remain attractive. There are exceptions to the rule, of course, but it’s predictable enough that many big businesses will find themselves faced with a similar situation sooner or later.

Amazon appears to be in the midst of it right now – that is, if you believe everything you read online.

A recent report from Gizmodo highlights growing frustration from consumers over Amazon’s introduction of ads to TV shows and movies on Prime Video. The new ads, which were announced back in September and started rolling out this week, can be disabled for an additional $2.99 per month.

Will consumer frustration boil over to the point that a meaningful number of people will cancel Amazon Prime? Only time will tell.

According to a recent report from Consumer Intelligence Research Partners (CIRP), Amazon Prime membership was mostly flat between December 2021 and December 2022 following years of steady growth. The grown returned this past year, however, as the firm estimates 176 million US Amazon customers had a Prime membership as of December 2023 – up about five percent year over year.

The small percentage of folks that are truly miffed about ads coming to Prime Video could cancel their accounts in protest, but don’t expect it to rock the company. Prime Video is just one of many perks that a Prime account affords, the most prominent being shopping and shipping benefits that largely remain unmatched.

Do you have a Prime account? If so, how many perks besides shipping do you actually use on even a semi-regular basis?

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