PRESS PLAY: WHY AMAZON PRIME VIDEO NEEDS ADS

The OTT platform is now showing ads to paying users. Will it help fix subscriber growth and recoup content costs?

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Arpit Roy isn't a happy man.

Already swamped with multiple renewals across audio and video subscriptions, Roy has A just realised he's subscribed to a platform that will now show him ads.

The platform in question is Amazon Prime Video, a streaming service he has used for over seven years.

In May, Amazon Prime Video customers in India were in for a rude shock when they received emails announcing that movies and shows on the streaming ser vice would come with ads, starting June.

A new ad-free add-on option would be available but would cost an additional ₹699 per year, or 129 per month-essentially users would have to pay more money to continue watching the same content as before, ad-free.

Given that the whole premise of video streaming was freedom from ads as opposed to cable television, Prime Video's move has come in for much vitriol from users, especially on social media platforms.

"I'm already paying for too much stuff.

And now they want me to see ads after I pay? How is this a premium offering? Aren't they breaking the trust of subscrib ers," asked Roy.

The move is all the more surprising given how important India is for Prime.

The company said that the country continues to be among the top three international locales for Prime Video globally in terms of number of hours streamed.

According to the company, in 2024, India had the highest percentage of members stream Prime Video in the world. And in the last 12 months, nearly 25% of its Indian subscriber base are new users.

According to industry experts, paid Prime Video subscribers currently stand at 21 million compared to 12-15 million for close rival Netflix.