Amazon Faces Class Action For Enshittifying Prime Video

from the I-am-altering-the-deal.-Pray-I-don't-alter-it-any-further. dept

Last week Amazon began charging Amazon Prime Video customers (who already pay $140 per year) an extra $3 extra per month to avoid ads that didn’t previously exist. One added wrinkle: apparently Amazon also pulled Dolby Vision and Atmos audio support from Prime Video unless users pay the additional toll to avoid ads, a change the company couldn’t be bothered to inform users of.

The move this week resulted in a class action lawsuit by annoyed subscribers, whose lawyers insist that Amazon violated subscriber agreements by suddenly charging for something that subscribers understood they were already paying for:

“Reasonable consumers expect that, if you purchase a subscription with ad-free
streaming of movies and tv shows, that the ad-free streaming for movies and tv shows is available for the duration of the purchased subscription.”

We’ll see if this class action results in anything more than lawyers getting a new boat and Prime Video subscribers getting a $3 check sometime by 2027.

Prime Video’s efforts to nickel-and-dime customers is the latest example of the steady enshittification of a streaming video industry that appears to have learned nothing from the scale-chasing issues that plagued cable TV. Now that the market has saturated, streaming companies are looking for creative ways to provide Wall Street the unrealistic endlessly improved quarterly returns bean counters demand.

That inevitably results in a brand quality cannibalization, as once disruptive and innovative upstarts shift toward “creative” efforts to goose profits and lower costs. That generally means price hikes, layoffs, pointless mergers, and less money spent on quality content, as well as crackdowns on things that used to be consumer benefits, like the lax treatment of things like password sharing.

This kind of behavior, in turn, opens the doors to more affordable and convenient alternatives to streaming video subscriptions, whether that’s piracy or free services like Twitch or TikTok. At which point, executives at places like Netflix and Amazon blame everyone but themselves for the subscriber exodus. It’s simply how this never-ending cycle works.

Filed Under: , , , , , , , ,
Companies: amazon

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Amazon Faces Class Action For Enshittifying Prime Video”

Subscribe: RSS Leave a comment
25 Comments
Anonymous Coward says:

Re:

Since it appears you can cancel Prime at any time and get a pro-rated refund

I didn’t know about that. It does make the case seem kind of dubious, now from both ends: it was also dumb on Amazon’s part to not hold off on the ads till each person’s renewal date.

Perhaps it’ll be found to be “misleading” to make people think they have to pay to remove ads, when in fact they can get that refund. Still, the maximum damages per person can hardly be more than $3 times 12 months, right? Half that on average if we assume evenly distributed renewal dates, so $18 per affected person. The actual settlement will likely be less than the maximum, then they lawyers will take half, so Karl’s estimate of $3 seems about right.

Anonymous Coward says:

Re: Re: Re:

“Error 462 Not allowed.”

Are they specifically disabling the feature, whatever it is, for those who don’t pay? Or is the problem just that differently-timed ads will make it really annoying, as a sibling comment suggested?

In either case, one could certainly invite others to one’s home for a viewing party. Decades ago, when TV had advertising, it didn’t stop people from doing this. It was an annoyance, of course, and will be a worse annoyance for people who didn’t grow up with advertising.

It could backfire on Amazon if people actually decide to do parties that way, with everyone but the hosts cancelling their subscriptions (whether the hosts pay that extra $3/month or not).

Anonymous Coward says:

You pay extra for no advertising only to be subjected to advertising, so you pay more for no advertising .. again.

What’s next .. it will become like the no call list where there are some ads that you can not pay extra to skip, the political and religious ads will be force fed. One will still be allowed to get up and use the restroom during advertisement time, for now.

Mononymous Tim (profile) says:

I never signed up for Prime to begin with because PAYING FOR FREE SHIPPING is a selling point for fools. That’d be like knowingly entering an abusive relationship and not expecting it to get worse. I’m a patient person, and I’ve only ever paid extra for next day shipping once in the many years I’ve been a customer, and it didn’t even come close to the yearly cost of Prime. Otherwise, I usually wait ’til I have enough to order to get me over the randomly changing minimum threshold for free shipping. Even if I don’t, I’ve never paid enough for shipping throughout the year to add up to the cost of Prime’s “free shipping”.

crashoverride says:

This extra charge has made the decision easy for me to cancel my Prime membership. This additional charge has given me reason to evaluate my Prime membership. As I only purchase twelve to fifteen times a year and shipping is often free if you spend over $25 the only thing holding me back was justifying the video service and laziness. With that now being of limited dubious value the decision to leave has become quickly evident. Thanks Prime for highlighting how valueless Prime has become.

John85851 (profile) says:

I’m not a lawyer, but I’m going to guess that Amazon’s lawyers pull out this claim:
People pay for Amazon Prime to get free shipping and faster shipping, so the video streaming service is just a bonus.
Though the end result of this argument may be that Amazon is forced to separate the Prime shipping service from Prime video. Then people can choose whether to pay for Prime video or just ftee shipping.

𝑩𝒓𝒂𝒗𝒐2𝑿𝑹𝒂𝒚 (user link) says:

Amazon Spying

This company is listening in on our conversations. How did I confirm this you might ask? They started by interrupting the Pro Sovereignty political channels I subscribe to on my “Fire TV” Devices I own. When.I said to my wife “I’m going to (Deregister My Devices)” Amazon shut them down rendering them useless.

LostInLoDOS (profile) says:

Dead lawsuit

“May change without notice”
Dead class action!

Reasonable consumers

Read what they sign and agree to. Not only did Amazon have no requirement to inform anyone of the change before hand, they gave months of prior notice.

Not surprised this comes out of California. I hope an intelligent judge puts an end to this nonsense before lawyers get rich off of it.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Ctrl-Alt-Speech

A weekly news podcast from
Mike Masnick & Ben Whitelaw

Subscribe now to Ctrl-Alt-Speech »
Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...
Loading...