Amazon might have narked millions of its customers by effectively forcing them to view advertising on Prime movies and TV shows, but it seems the most UK consumers don’t feel that strongly, with the vast majority unprepared to pay to go ad free on the streaming service.
The move, which was only revealed to customers at the end of last month, comes into force today, meaning Amazon Prime members in the UK will have to pay an extra £2.99 per month for an ad-free viewing experience.
The research, carried out by LoopMe, quizzed 2,296 UK consumers between January 26 and 31, just after the service was announced.
It found that, while 82% of consumers said that Amazon Prime is good value for money, three quarters (73%) are unwilling to pay extra to opt out.
However, the move is unlikely to cause subscribers to leave the streaming giant. Only a fifth (19%) said they would not keep Amazon Prime Video when it introduces ads, with a quarter (24%) stating they would retain their subscription as they did not mind ads.
A further 11% answered they would keep the subscription if the ads were relevant. Respondents aged 25 to 34 were most likely to pay for an ad-free experience, with 15% willing to increase their subscription.
Unsurprisingly, Amazon Prime’s additional services not offered by its streaming competitors – including its delivery and Kindle offerings – are key factors in Brit’s attitudes to the subscription service, with 38% answering they would keep Amazon Prime Video with ads if they could still use other Amazon Prime Services.
Other insights from LoopMe address the potential impact on streaming services in the event of a recession. Interestingly, 76% of respondents said they had no plans to cancel any of their subscription services in the next three months, with Gen Z consumers aged 18 to 24 making up the largest proportion of respondents unwilling to part with any of their subscriptions (75%). This comes as viewers of linear TV continue to decline.
LoopMe associate vice-president of marketing Sarah Tims said: “Amazon seems to have called people’s bluff by introducing ads to its basic tier, knowing people would not mind ads enough to pay extra.~
“The changes might do little to attract new subscribers but the value of its additional Prime delivery services is a certain advantage to its streaming counterparts.
“While Amazon might not replicate Netflix’s success with increased sign ups to its new ad tier, there’s little risk that it will lose existing subscribers. So, even if the move might not increase user revenue from the paid tier, the streaming giant will likely see the forecasted billions in advertising dollars.”
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