Amazon Prime Video is the latest streaming service to introduce ad-supported viewing at the start of 2021. This means that, from January onwards, viewers who subscribe will have to pay an extra $2.99 a month if they wish to avoid ads.
While the move is a disappointment for loyal customers of the streaming giant, it is not an altogether surprising decision. Amazon’s ad-funded strategy is in line with what many of its competitors have been doing, such as Hulu and Disney Plus. As consumers continue to flock towards these services, an extra charge can make up for the significant costs of content and infrastructure.
Amazon’s target audiences for this extra charge are the millions who have come to rely on its convenience and original programming. While this may not be popular amongst users, it does make sense from the company’s point of view. By making its service more cost-effective, Amazon will be able to better compete with the likes of Netflix and Hulu in an already saturated market.
The additional charge is also indicative of the company’s belief that its customers are willing to pay for a better viewing experience. It may sound like small change, but the fee can act as a buffer against ads, enabling viewers to experience the content uninterrupted. This in turn may lead to a better viewing experience, which could boost subscription numbers.
Of course, the move has faced criticism. Many have suggested that the fee should be optional and come with an incentive, such as additional features. However, it is unclear whether Amazon will offer this in future.
Whatever the future may hold, what is clear is that Amazon Prime Video is ready to embrace ad-supported viewing. Whether customers agree with the decision or not, it seems that an extra charge of $2.99 a month is now an inescapable reality.
Amazon Prime Video is the latest streaming service to introduce ad-supported viewing at the start of 2021. This means that, from January onwards, viewers who subscribe will have to pay an extra $2.99 a month if they wish to avoid ads.
While the move is a disappointment for loyal customers of the streaming giant, it is not an altogether surprising decision. Amazon’s ad-funded strategy is in line with what many of its competitors have been doing, such as Hulu and Disney Plus. As consumers continue to flock towards these services, an extra charge can make up for the significant costs of content and infrastructure.
Amazon’s target audiences for this extra charge are the millions who have come to rely on its convenience and original programming. While this may not be popular amongst users, it does make sense from the company’s point of view. By making its service more cost-effective, Amazon will be able to better compete with the likes of Netflix and Hulu in an already saturated market.
The additional charge is also indicative of the company’s belief that its customers are willing to pay for a better viewing experience. It may sound like small change, but the fee can act as a buffer against ads, enabling viewers to experience the content uninterrupted. This in turn may lead to a better viewing experience, which could boost subscription numbers.
Of course, the move has faced criticism. Many have suggested that the fee should be optional and come with an incentive, such as additional features. However, it is unclear whether Amazon will offer this in future.
Whatever the future may hold, what is clear is that Amazon Prime Video is ready to embrace ad-supported viewing. Whether customers agree with the decision or not, it seems that an extra charge of $2.99 a month is now an inescapable reality.
