Both CBS and Amazon made headlines this week after CBS All Access officially landed on Amazon Prime. The CBS streaming service brings more live TV and on-demand streaming options to Amazon Prime users. It also adds to the 100+ channels already available through Amazon’s add-on channel service. However, those who sign up for CBS All Access through Amazon Prime will find their options limited.
Normally, CBS offers two versions of its streaming service: a $5.99 subscription plan that includes advertisements, and a $9.99 option that’s offered without ads. Subscribers can effectively save 50% by signing up to CBS All Access with ads. The company offers a yearlong subscription for an additional 15% discount.
The ad-supported option, however, is unavailable through Amazon Prime. This means new subscribers using the Amazon channel will be forced into the higher paying option if they don’t realize there’s a cheaper option available elsewhere.
Signing up to CBS All Access through Amazon Prime offers some advantages. Amazon users can access the CBS streaming service through one app instead of having to install a separate one for CBS All Access. For CBS, this means potentially capturing more subscribers who may have been otherwise unwilling to sign up for their subscription service. Additionally, CBS can save on bandwidth through its own site by utilizing Amazon’s web resources instead of its own.
Still, research has shown that most TV viewers don’t actually mind commercials. According to a Nielsen study, Millennials don’t mind ads if the content is free. This is likely because older research has proven that Millennials typically don’t respond to advertisements anyway.
CBS has had some notable success with its streaming service. The company announced a second season for Star Trek Discovery. While CBS has not released any official numbers for the service, it does claim the hit nearly doubled its subscription revenue.