Observed Signal · Oct 9, 2024 · Policy Update · Source: OnlineMarketing.de · Impact: 3/5 · Sentiment: Negative
More Ads on Prime Video: Class Action Expands?
Prime Video in Germany plans to increase advertising within paid subscriptions, with ad loads rising in 2024 and more substantially in 2025. Amazon began ads on Prime Video from February 5, 2024, aiming to show fewer ads than linear TV and other streaming services. An ad-free tier remains available for roughly €3 more per month. The rollout has sparked consumer backlash, and Verbraucherzentrale Sachsen is considering expanding its ongoing class-action, which has already drawn over 61,000 sign-ups. The Information reports a targeted $1.8 billion upfront spend from advertisers for Prime Video ads, while Amazon’s Q2 2024 revenue reached about $148 billion with roughly $12.8 billion attributed to Advertising. Advertisers are attracted by lower CPMs (around $30) and plans for Shoppable Ads that let viewers purchase products directly from Prime Video. The controversy underscores ongoing tensions between streaming ad monetization and consumer protections.
Significant expansion of ad-supported content on Prime Video and potential expansion of a consumer class-action; notable impact on the CTV ad ecosystem.
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Key Takeaways & Evidence Grounding
- Prime Video ads began February 5, 2024 in Germany.
- Ad-free tier costs roughly €3 more per month.
- In Q2 2024, Amazon revenue was about $148B, with Advertising at roughly $12.8B.
- Initial Prime Video ad CPMs were around $30.
- Verbraucherzentrale Sachsen has a continuing class-action against Amazon with over 61,000 sign-ups.
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Class Action vs Amazon Over Prime Video Ads Set for May
The Verbraucherzentrale Sachsen’s class action against Amazon over the introduction of advertising in Prime Video will be heard orally at the Higher Regional Court (Oberlandesgericht) in Munich on 2026-05-19. The suit challenges Amazon’s decision to add ads into existing Prime subscriptions (rather than creating a separate ad tier) and seeks reimbursement for affected customers (claimed €2.99/month, ~€80 for the period since 2024). Nearly 220,000 people have joined the claim; registration in the plaintiffs’ register runs until 9 June. A prior Munich I court ruling found Amazon should not have introduced the advertising without consent; Amazon has appealed and disputes the allegations, with Nils Gräf of Amazon Ads Germany saying the company informed customers in advance and acted lawfully.
Amazon Prime Video Ads Thrive: New Features Ahead!
ADZINE interviewed Nils Gräf about Prime Video with ads after its first year. In the EU5 region (Germany, UK, France, Italy, Spain), 80% of Amazon Ads customers who booked Prime Video ad inventory in the first six months subsequently booked additional Prime Video campaigns in the following six months. Prime members can choose between an ad-supported tier and an ad-free option for €2.99 per month, with the majority remaining on the ad-supported plan. Gräf notes Prime Video ads are most effective as part of a full-funnel strategy, citing HP and Unilever/Magnum as successful examples. For 2025, Amazon announced interactive formats: Interactive Video Ads and Interactive Shoppable Carousels, plus Pause Ads that use QR codes or a learn-more overlay; Shoppable Carousels are limited to brands with products in the Amazon Store. Additional developments include enhanced targeting across streaming, shopping, and browsing signals, Reach Planner integration with AGF data, and expansion of the Amazon Marketing Cloud with High Value Audiences and Optimal-Frequency analyses. Also highlighted were AI-driven tools like a cloud SQL generator and a Video Generator, with content focus on premium TV, films, and live sports.
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