Netflix started a really bad trend back in 2022 which is affecting the global OTT space. Especially when there is a brainless imitation of this step then the problem becomes legal and intense. This is precisely the case with Prime Video but only in the USA so far.
Amazon Prime Video recently made a big change that has some members upset. They started showing ads in their videos, even for people who pay for a Prime membership. This move led to a lawsuit filed by a Prime member named Wilbert Napoleon from Eastvale, Calif.
Napoleon and his lawyers argue that when people signed up for Prime, they expected to watch their favourite shows and movies without interruptions by ads. But starting in late January 2024, Amazon began showing ads unless members paid an extra $2.99 each month for an ad-free experience.
The lawsuit claims that Amazon’s actions are unfair and deceptive. It says that customers shouldn’t have to pay extra for something they thought was already included in their Prime membership.
Amazon hasn’t said much about the lawsuit, but its CEO, Andy Jassy, believes that including ads will help them make more money and invest in new shows and movies.
Unlike other streaming services like Netflix and Disney+, which offer separate plans with ads for less money, Amazon now puts ads in their regular Prime Video service. It is actually brainless because they should have played smartly. It is a basic but also a blunder.
If Amazon is unable to handle this case properly then we might see some big changes in the way the digital entertainment industry works. We promise to keep you posted.