Lawsuit against Prime Video ads shows perils of annual streaming subscriptions

Enlarge / Priyanka Chopra (left) and Richard Madden (right) in the Prime Video original series Citadel. (credit: Prime Video/YouTube)

Streaming services like Amazon Prime Video promote annual subscriptions as a way to save money. But long-term commitments to streaming companies that are in the throes of trying to determine how to maintain or achieve growth typically end up biting subscribers in the butt—and they're getting fed up.

As first reported by The Hollywood Reporter, a lawsuit seeking class-action certification [PDF] hit Amazon on February 9. The complaint centers on Amazon showing ads with Prime Video streams, which it started doing for US subscribers in January unless customers paid an extra $2.99/month. This approach differed from how other streaming services previously introduced ads: by launching a new subscription plan with ads and lower prices and encouraging subscribers to switch.

A problem with this approach, though, as per the lawsuit, is that it meant that people who signed up for an annual subscription to Prime Video before Amazon’s September 2023 announcement about ads already paid for a service that’s different from what they expected.