Amazon is developing a new subscription plan that would be partially funded by advertisements. As reported by The Wall Street Journal, the plan would offer a cheaper subscription for users to access Prime Video series and movies, but with ads that are unskippable. Until now, Amazon has considered Prime Video as one more advantage of having the Prime subscription. However, this change of policy may be due to Amazon losing subscribers who only want to pay for Prime Video, not the whole subscription.
The move follows the recent success of Netflix’s ad plan in Spain, which has been controversial but lucrative. Other companies have taken notice of the success of the ad plan and are considering implementing something similar.
In Spain, Prime Video cannot be contracted separately from the Amazon Prime subscription, so its cost depends on what Prime will cost. Until now, this has been Amazon’s preferred model as it encourages users to purchase the full subscription with free shipping and access to offers on Prime Days. However, many people want to enjoy Prime Video without paying for the full subscription, which may not suit their needs, especially if they order only a few items from Amazon a year.
The new plan would cater to this type of user who only wants access to Prime Video. The proposed subscription would offer a much cheaper rate with ads, similar to Netflix’s ad model. However, it is unclear how much the new subscription will cost.
Amazon is also considering taking the opposite path, adding ads to the current subscription and offering a new ad-free subscription at a higher price. This proposal, although not as popular with users, would be more beneficial for Amazon, as all current accounts would generate ad revenue. However, Amazon has yet to make a decision on which path to take, as the company may continue with its current model.
The move also comes amid a recent controversy where Netflix offered a ‘secret’ subscription without ads, which is hidden from users. Amazon’s proposed ad plan may appeal to users who are increasingly turned off by additional subscription fees. This also marks a change in Amazon’s strategy towards Prime Video and how the company perceives it as a standalone product.
In conclusion, Amazon’s proposed ad plan is still in the works, and the company may decide not to implement any changes. However, the Netflix ad model’s success in Spain has encouraged other companies to consider similar models, and Amazon may be the next significant player in this game. This move may also be beneficial for users who only want to access Prime Video.
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