New data shows that almost three quarters (73%) of Amazon Prime users are not willing to pay £2.99 extra per month for an ad-free version of the service, however, only fifth plan to unsubcribe, as the streaming giant rolls out advertising today.
According to the data from LoopMe, 82% of consumers also responded that Amazon Prime is good value for money overall.
Meanwhile, a quarter (24%) of consumers stated that they would retain their subscription as they did not mind adverts.
In addition, 11% said they would keep the subscription if the ads were relevant, with respondents aged 25 to 34 most likely to pay for an ad-free experience, with 15% willing to increase their subscription.
It comes as the multinational beat fourth quarter estimates, posting £11.3 billion ($14.2 billion) in ad sales, which represented a 27% climb.
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Further data also revealed that Prime’s additional services, such as delivery and kindle offerings were key to users keeping their subscriptions, with 38% saying that they would keep Amazon Prime with ads if they could use other Prime services.
“Amazon seems to have called people’s bluff by introducing ads to its basic tier, knowing people would not mind ads enough to pay extra. This is reflected in Loop Me’s data, where a majority of UK subscribers (73%) are unwilling to pay the additional fee for an ad-free experience,” said LoopMe AVP Sarah Tims.
She added: “While Amazon might not replicate Netflix’s success with increased sign ups to its new ad tier, there’s little risk that it will lose existing subscribers. So, even if the move might not increase user revenue from the paid tier, the streaming giant will likely see the forecasted billions in advertising dollars”.
