Amazon’s decision to introduce ads to PRIME VIDEO leads to legal action from subscribers seeking ad-free content.
Subscribers of Prime Video in the U?S have initiated a proposed class action lawsuit in a Californian court, challenging the recent alterations to the streaming service’s subscription model.
The court action comes as Amazon transitions its ad-supported tier to the default setting for Prime Video, instituting an additional charge of US$2.99 per month for viewers wishing to continue enjoying content without advertisements.
This change affected existing subscribers, who were already contributing US$139 annually for the service, compelling them to incur extra costs to maintain the ad-free viewing experience they previously enjoyed.
The crux of the lawsuit does not dispute Amazon’s authority to modify the pricing structure of Prime Video subscriptions. Instead, it centers on the entitlement of subscribers, who have paid their annual fees, to access the service without ads, consistent with the terms at the time of their contract’s commencement. The plaintiffs argue that the introduction of an ad-supported tier during the contractual period constitutes a breach of contract and infringes upon state consumer protection laws.
Prime Video is set to introduce advertising for its Australian subscriber base in June 2024.
Amazon is reportedly engaging with local advertising agencies and brands to discuss the integration of advertisements within its Prime Video originals and select licensed content, targeting an estimated Australian audience of 5 million. This strategic move by Amazon suggests a broader shift in the streaming service’s approach to content monetization, affecting its global user base.
The legal action seeks damages exceeding US$5 million and aims to secure a court order prohibiting Amazon from continuing what the plaintiffs describe as “deceptive conduct” towards users who had subscribed to Prime prior to December 28, 2023.
“For years, Amazon advertised that its Prime subscription included ad-free streaming of movies and TV shows,”
states the court document.
“Like other consumers, [the] Plaintiff purchased the Prime subscription, believing that it would include ad-free streaming of movies and TV shows. But it does not. Plaintiff brings this case for himself and for other Amazon Prime members.”
Amazon has opted not to comment on the ongoing lawsuit.
