Amazon took its most aggressive step in early 2024. Instead of introducing a new, cheaper advertising plan, the company chose the opposite approach: All existing Prime Video customers—who already pay for the Prime service—were forcibly switched to an ad-supported plan.

Those who want to continue watching ad-free have to pay an additional €2.99 per month.

This isn’t a price reduction for bargain hunters; it’s a hidden price increase for everyone who wants to maintain the status quo. Amazon has thus devalued the established Prime subscription overnight. Customers now pay for the privilege of not seeing ads, in addition to the cost of a subscription that was once ad-free.

Netflix and Disney+ were more subtle, but no less consistent. They introduced “basic plans with ads” that were cheaper than their ad-free counterparts. At first glance, this seems fair: those who want to save money accept advertising.

But the reality is different:

• The “standard” subscription is becoming unattractive: the ad-free plans have been massively increased in price at the same time. The “standard” plan (ad-free, Full HD) is being made so unattractive price-wise that new customers are psychologically pressured into the cheaper ad-supported subscription.
• Hidden downgrades: The Netflix ad-supported plan not only lacks content (due to licensing restrictions), but also features like downloads.
• The shift in the norm: Netflix is ​​now pushing the ad-supported subscription as its new “standard” product. The goal is clear: Advertising revenue per user is often more valuable to corporations than the pure subscription fees.

The feeling of being “cheated” that many customers experience is justified. We are moving towards a system that combines the worst of both worlds:

• We pay a monthly subscription fee (like with old pay TV).
• And yet we still get commercial breaks (like with old free TV).

The industry cynically calls this a “hybrid model.” For customers, it’s simply “double-dipping.” Uninterrupted binge-watching, once the core argument for streaming, is becoming an expensive luxury upgrade that has to be purchased in addition to the basic fee. The revolution is devouring its own children—and sending us the bill.