Free deliveries will stop mass cancellation of Amazon Prime, claims ParcelHero

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Amazon’s Prime Video channel imposes adverts from today – and users have taken to social media to vent their fury. Many are threatening to ditch their subscriptions, but the home delivery expert ParcelHero says the lure of Amazon Prime’s ‘free’ next-day deliveries means most Brits won’t click ‘Cancel’.

Viewers of Amazon’s Prime Video streaming movie and TV service will be watching adverts from today. It’s a move that is making many customers furious, with scores already taking to social media to express their anger.

However, the home delivery expert ParcelHero says Prime membership’s prime attraction – next-day Amazon deliveries at no extra charge – means the majority of subscribers are unlikely to hit cancel.

Says ParcelHero’s Head of Consumer Research, David Jinks:

“Prime Video users are now seeing ads and they are also seeing red. Some are threatening to cancel their subscriptions, or even boycott products advertised on the streaming service.

“When Amazon launched its Prime membership service back in 2007, it enabled customers to save money on shipping while getting items more quickly. Since then, Amazon has piled on more Prime perks, including access to same-day supermarket deliveries, Amazon Music, Prime Day sales, “Try before you buy” services, Kindle offers and Deliveroo Plus free restaurant deliveries. The most successful added benefit, however, has been Prime Video, a streaming TV and movie service launched in 2014, which offers a whole library of shows to watch at no extra charge (plus access to newer movies and box sets to rent or buy).

Value for money?

Prime Video has become one of the key reasons why around 15 million Brits part with £8.99 per month or £95 per year to be Amazon Prime members. Programmes such as The Grand Tour, Jack Ryan, Rings of Power and The Marvelous Mrs Maisel have attracted many new viewers. Until now, these programmes, unlike the majority of UK traditional independent channels, have been mercifully free of commercials.

‘That is now changing. From today, “limited advertisements” (in the words of Amazon) have appeared. The switch isn’t without precedent. Disney+ introduced a cheaper service with ads last year. However, the issue with Prime Video is that it’s the standard Prime service that will switch to running adverts, and members will have to cough up an extra £2.99 a month to ditch the new ads.

Netflix charges £4.99 a month for its with-ads service, £10.99 a month for its Standard ad-free service and £17.99 for its UHD service.
Disney+ also charges £4.99 for its with-ads service, but charges just £7.99 for its Standard no-ads service and £10.99 for its UHD service.
Prime Video is £8.99 a month or £95 for a year for its standard (now with-ads) service.

“Now Prime Video carries adverts that makes Netflix and Disney+ equivalent with-ads channels £4 a month cheaper. But this calculation doesn’t take into account all the other perks of Prime membership and, particularly, next-day delivery at no extra charge.

“If shoppers unsubscribe from Prime, they will end up paying Amazon’s fee of £4.99 for a Premium next-day delivery. Alternatively, they will have to wait 3-4 days for free standard deliveries. In the era of instant gratification, fewer people are prepared to wait. However, frequent £4.99 payments will soon start adding up for regular customers. It only takes 19 orders and Prime membership has paid for itself.”

Chris Price
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