Amazon wins lawsuit over ads on Prime Video
What's the story
Amazon has won a legal battle against its Prime Video subscribers over the introduction of advertisements on the streaming service. The lawsuit was dismissed by a federal judge after it was ruled that the ads were a "benefit modification" specifically considered and authorized by Amazon and the subscribers. The change, which came into effect in January 2024, requires subscribers to pay an additional $2.99 per month for an ad-free experience.
Subscriber claims
Subscribers argued that Amazon had promised an ad-free experience
The subscribers, who pay $139 a year for Prime Video, argued that Amazon had promised an ad-free experience. They contended that the introduction of ads was a price increase that violated their subscriber agreements and Washington state consumer protection laws. However, US District Judge Barbara Jacobs Rothstein in Seattle ruled otherwise.
Legal ruling
Judge rules ads are a 'benefit modification'
Judge Rothstein ruled that adding ads was allowed under Amazon's contract as part of a "benefit modification." The decision essentially gives Amazon leeway to adjust features or introduce ad-supported options without violating any laws or contracts, provided it's within the agreement.
Industry impact
Ruling could impact future of streaming services
The ruling is a major win for Amazon and could have wider implications for how streaming platforms balance subscriptions with ads in the future. As more streaming services look for revenue opportunities, we could see more hybrid models like this one—and possibly more legal challenges over what exactly you're paying for.