Amazon Prime Video Faces Backlash Over New Ad-Supported Tier

Amazon Prime Video is facing widespread criticism after rolling out a new ad-supported subscription tier in the U.S. this week. The change, which went into effect on April 1, forces non-paying members to watch ads unless they upgrade to a $2.99/month ad-free plan—a move many subscribers call a "hidden price hike."

The backlash has sparked over 50,000 complaints on social media since Monday, with users accusing Amazon of "bait-and-switch" tactics. Subscribers who previously enjoyed ad-free streaming under their Prime membership now see interruptions unless they pay extra. Amazon confirmed the shift is permanent, citing "rising content costs" as the reason.

Trending searches for "cancel Amazon Prime" spiked 320% in the past 24 hours, according to Google Trends data. The controversy mirrors Netflix’s 2022 ad-tier rollout but differs because Amazon altered existing benefits rather than adding a new option. Consumer advocates note the change wasn’t clearly communicated in renewal notices.

Amazon Prime currently has over 200 million members globally, with U.S. subscribers accounting for nearly half. Analysts estimate the ad tier could generate $3 billion annually for the company. However, retention risks loom—a recent CivicScience poll found 42% of Prime members would reconsider their subscription if ads became unavoidable.

The company has yet to respond to the outcry. Meanwhile, competitors like Max and Disney+ are capitalizing on the discontent, promoting their ad-free plans on social media. The timing is particularly sensitive as Amazon prepares for its annual Prime Day sale in July, a key retention driver.

For now, affected users have two choices: tolerate ads or pay $36 more per year. The dispute highlights growing tensions as streaming services balance profitability against subscriber expectations in a crowded market.