The streaming wars are heating up with the announcement that Amazon Prime Video will be increasing the fees for their subscription service to avoid ads beginning in January 2021. This move comes as the company seeks to keep up with competitors such as Netflix.
Amazon Prime Video, the video streaming service that provides access to movies, television shows, and other content, is set to increase its subscription fees from $8.99/month to $11.99/month to allow viewers to avoid ads. This charge also applies to those who already have an active subscription and will begin in January 2021.
The move is in response to stiff competition from streaming services such as Netflix, which has been offering ad-free subscriptions since the service launched in 2016. Amazon Prime Video also allows users to purchase ad-free viewing via the Amazon Prime service, but the cost is much higher than the current subscription price.
The subscription increase comes at a time when streaming services are vying for subscribers, and the cost of Amazon’s existing service is already much higher than that of Netflix. The additional cost means that Amazon Prime Video is pricing itself out of the market and may be cutting its own customer base.
The news of the price increase also comes as streaming services are increasingly offering exclusive content, which is an important factor for viewers looking to select a service. Netflix has already established itself as the king of exclusive content with offerings such as House of Cards, Narcos, and Orange is the New Black, while Amazon Prime Video is comparatively light on high-profile originals.
With the extra fees being charged, it is likely that many viewers may opt to stay with their current streaming provider or switch to a cheaper option, while Amazon Prime Video looks to compete with its rivals by offering a subscription package that has no ads and more exclusive content. Whether or not this is a successful move remains to be seen.
