Starting February 5th, Amazon Prime Video users in Germany, the UK, and Canada were greeted with a notification about the introduction of advertisements on the streaming platform. For 2.99 euros per month, users can upgrade to an ad-free experience. This practice has been in place in the USA since the end of January.

Apart from Prime Video, Amazon also operates Freevee, a free streaming service entirely funded by advertisements shown during movies and series. Why introduce ads on Prime Video? Amazon responded that it aims to continue investing in "fantastic content" and maintain this investment at a high level long-term. "Our goal is to have significantly fewer ads than traditional TV channels and other streaming services," Amazon claims.

Consumer advocates are reportedly preparing class-action lawsuits against Amazon, arguing that the platform should have first sought the consent of each user, as this constitutes a change to the terms agreed upon in the contract between them and the company.

Subscription services that also display ads are not yet the norm in Germany but are increasingly prevalent. According to Vaunet (Association of Private Media), some streaming services already offer subscription packages but are also funded by "measured placement of advertisements," like Disney+, Netflix, or Wow. Consulting firm Goldmedia, specializing in market research, explains that "this trend has been followed for some time by platforms in the USA, where this model works very well. It was, therefore, a matter of time before it arrived in Germany."

Does this indicate that subscription services on platforms might soon be a thing of the past? According to Vaunet, not exactly: "It's more an expansion of the subscriptions offered in the streaming market." As the Association adds, "with the increase in viewers, streaming platforms have reached a point where they attract more and more advertising industry," intensifying competition.

Goldmedia highlights that these developments will put even greater pressure on television, as advertising spaces multiply. Additionally, customers will more easily cover the cost in mixed models or those that include advertisements, while there will be greater customer mobility among various platforms.

Goldmedia attributes the exploitation of mixed models by streaming platforms to the following: the promotion of subscription offers does not cover costs in the market overall, as long as the offer of movies and series remains high. "The number of subscriptions is not increasing significantly, and consumer cost pressure is greater due to difficult external conditions. Therefore, it is logical for streaming platforms to seek new revenue sources." Finally, there is hope that customers will increase if the subscription cost is reduced due to advertisements.