LoopMe, a company that uses artificial intelligence (AI) to improve brand advertising performance, has revealed that consumer perception of Amazon Prime’s value for money has dropped by nearly half (47 per cent) since Prime Video introduced ads in February 2024. While in 2024 a similar LoopMe survey found that most people (85 per cent) viewed it as offering value before introducing ads, the research shows this has fallen to 38 per cent in 2025.

The latest survey (of 19,753 UK and US consumers in January 2025) also shows a rise in people’s unwillingness to pay to opt out of receiving ads. This is particularly apparent among 25-34-year-olds. In 2024, 12 per cent stated they were happy to pay—the highest for any age demographic—but this has now fallen by almost half, to just 7 per cent.

What’s more, it has prompted younger consumers to act. A quarter (25 per cent) of 25-34-year-olds surveyed said they had canceled their Prime membership because of the introduction of advertising. This is markedly different from older demographics, with just 15 per cent of 55-64-year-olds taking action for the same reason. Overall, 21 per cent of all respondents said that they didn’t mind the ads, and 41 per cent said that the introduction of ads hasn’t changed how they feel about Amazon Prime, indicating to advertisers the opportunity to reach engaged audiences, while carefully considering different demographic preferences.

When it comes to watching content on streaming services – including Prime Video – the research highlights that the big screen wins out. TV, at 45 per cent, was the number one viewing device. However, age is also a key factor in determining device preference.

While the majority (61 per cent) of 45-54-year-olds prefer to use the main TV to enjoy streaming services, just 28 per cent of the 18-24 group opt for this. Instead, they have the highest preference of any age group for accessing streaming content via apps on their phone or tablets (15 per cent). With in-app being a future driver of brand advertising, and with viewing data highlighting 88 per cent of individuals aged 13-24 use smartphones for video viewing weekly, surpassing the 72 per cent who use smart TVs, this provides an opportunity for advertisers to reach these lucrative younger age groups whose spending power will only increase.

“Undoubtedly, Amazon is driving revenue from introducing its ad-supported tier alongside its paid-for opt-out proposition, but this appears to be at the expense of eroding its differentiation from its competitors,” commented Sarah Tims, AVP Marketing at LoopMe. “While Prime’s bundled offering of services provides consumers with more reasons to sign up, the value for money people associated with it has significantly declined. This could have implications for future subscriber numbers, especially as it is the younger demographics that appear less accepting of the current situation.”

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Categories: Advertising, Articles, Consumer Behaviour, Premium, Research, VOD

Tags: advertising, Amazon, loopme, Prime Video