Prime Video losing younger customers thanks to ad rollout
Prime Video losing younger customers thanks to ad rollout
A new survey shows that the introduction of ads to Prime Video has hurt the streamer’s value in the eyes of some demographics.
The decision by Prime Video to roll out ads on its existing streaming tier was no doubt a gamble for Amazon. The company was betting that the majority of customers who got Prime Video through their larger Amazon Prime subscription would still see it as a good enough value to keep, even with streaming ads now part of the equation. One year after the launch of ads on Prime Video, that gamble is not paying off amongst one key demographic. New research from LoopMe indicates that some young viewers no longer see Prime as the value it once was, and are canceling their subscriptions as a result of ads on Prime Video.
Key Details:
- LoopMe found that only 38% of respondents think of Prime as offering value after the introduction of ads.
- Twenty-five percent of respondents aged 25-34 said they had canceled Prime after the rollout of ads.
- Older customers were more willing to stick with the streamer after ads were placed there.
The survey from LoopMe indicates customer perception of the value of Prime has taken a big hit since ads were placed on Prime Video. Before ads came out on the streamer, 85% thought it offered good value, but the number plummeted to 38% one year after the ad launch.
Viewers aren’t enthusiastic about paying more to avoid ads, either. Respondents aged 25 to 34 were the demographic most happy to pay to avoid ads in 2024, with 12% saying they would do so. That number has dropped to 7% in 2025, and 25% of this age group say they have actually canceled their Prime subscriptions since ads came to Prime Video.
Older viewers are more likely to be accepting of ads. Only 15% of respondents 55 to 64 said they canceled Prime because of ads and 41% of total respondents said that placing ads on Prime Video hasn’t changed their perception of the service’s value overall.
“Undoubtedly, Amazon is driving revenue from introducing its ad-supported tier alongside its paid-for opt-out proposition, but this appears to be at the expense of eroding its differentiation from its competitors,” commented Sarah Tims, AVP Marketing at LoopMe. “While Prime’s bundled offering of services provides consumers with more reasons to sign up, the value for money people associated with it has significantly declined. This could have implications for future subscriber numbers, especially as it is the younger demographics that appear less accepting of the current situation.”
Why are younger viewers so much less likely to put up with ads than older ones? My working theory continues to be that audiences 25 to 34 grew up on the promise of streaming being ad-free, and are less likely to accept a switch to ad-supported. Older viewers, on the other hand, are used to TV coming with ads and are less resistant to finding commercials on their streaming services.
Whatever the case may be, LoopMe’s data is a warning for Prime Video to tread cautiously. It still has an opportunity to reach engaged customers with its ads, but it must be wary about which age groups it targets most with advertising.
Prime Video
Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.