Prime Video’s Multi-Tier Maze: Is Amazon undermining trust in India’s OTT boom?

Amazon Prime Video has long positioned itself as a gateway to premium global and regional entertainment in India. But the platform, once hailed for democratizing access to quality content, is now drawing fire for what many see as a complex, fragmented and opaque subscription model. A growing number of users are voicing frustration at what they perceive to be misleading pricing, where a Rs 1,499 annual subscription does not grant truly “all-access” viewing, and ads are shown unless they shell out an additional Rs 699 per year for an ad-free experience.

Others are bewildered by add-on channels that cost extra—like Lionsgate Play (Rs 799/year), Discovery+ (Rs 499/year), and Eros Now (Rs 199/year).

One user vented on social media. “Prime Video is doing next level scam: First pay Rs 1,499 for the subscription, then pay more for movies that aren’t available, and now pay again to go ad-free.”

Read more: Amazon doubles Prime Video ad load to 4–6 minutes per hour

This sentiment is reflective of a broader trend—confusion, mistrust, and rising consumer anxiety about OTT monetization in a highly price-sensitive market. The outrage may seem exaggerated to some, but the experience of being met with paywalls and ads after buying a "full" subscription is not isolated.

A Platform or a Marketplace?

At the heart of this debate is a fundamental shift in how Amazon positions Prime Video. It is no longer merely a streaming platform; it is an “entertainment store,” as a company spokesperson described it. “It serves both as a subscription benefit within Amazon Prime and a broader content marketplace where viewers can tailor what they want to watch, how, and when,” the spokesperson said in a statement shared with Storyboard18.

Indeed, Prime Video today offers more than just movies and shows. Subscribers can rent newly released blockbusters through the platform’s Transactional Video on Demand (TVOD) service, which it claims to bridge the gap between theatrical releases and their arrival on subscription-based streaming. Amazon has built the country’s one of the largest rental catalogue with over 8,000 titles, including films unavailable on any subscription platform. In India, customers can access Hollywood releases just 42-45 days after theatrical release via rentals, an offering which it says is 'valuable in a country with only 8 screens per million people'.

Prime Video’s add-on subscriptions further deepen the content pool. More than 25 third-party services—such as Apple TV+, Lionsgate Play, BBC Player, Discovery+, and regional streamers like Hoichoi, Manorama Max and Chaupal—can be accessed within the Prime Video app. These partnerships extend national visibility to smaller platforms while offering viewers a unified experience. Notably, this model exists globally, with Prime Video hosting over 670 streaming partners across 21 countries.

The Confusion: What’s Included, What’s Not?

Still, the Indian user base remains largely unaware of these nuances. For many, the Rs 1,499 Prime membership is expected to unlock everything Prime Video offers. The introduction of advertisements in March 2024, unless users pay an additional Rs 699 annually, came as a rude shock. In fact, the platform has now reportedly doubled the ad load from four to six minutes per hour.

Critics argue that Amazon’s interface doesn’t clearly differentiate between what’s included in Prime and what’s extra. This lack of clarity may run afoul of India’s consumer protection laws, which call for unambiguous, standardised disclosures.

Read more: Amazon’s Ad Gamble: Why Prime Video is betting on commercial breaks in India

Legal expert Dinesh Jotwani says, “What was marketed as a comprehensive, all-in-one streaming service has become a multi-tiered maze. If content is locked behind further paywalls or bundled in vague ways, it raises questions under the Consumer Protection Act and IT Rules, 2021. It’s time the industry adopted a self-regulatory framework—before regulators step in.”

He also warned that in absence of transparency, the Competition Commission of India could view such practices as “abuse of dominance” under Section 4 of the Competition Act, particularly if smaller competitors can’t compete against Amazon’s reach but are forced to piggyback on its infrastructure.

Industry Defends the Model

However, several industry experts see Amazon’s strategy as a commercially sound response to evolving viewer habits and mounting content costs.

Karan Taurani of Elara Capital says India’s OTT audience is too diverse for a “one-size-fits-all” approach. “Offering multiple pricing options—TVOD, add-ons, or ad-free plans—isn’t harmful. It allows consumers to pick exactly what they want. Also, smaller streaming services benefit from Prime Video’s platform to acquire users at lower cost.”

According to Taurani, this bundling may look fragmented, but it allows greater discovery, expands content access, and enables revenue diversification for both Amazon and its content partners. “This model is global. Netflix too is now pushing ad-supported tiers. It’s about growing when subscription saturation kicks in.”

Siddharth Jhawar, Country Manager at Moloco India, echoes that sentiment. “There’s an in-built regulator in the OTT economy—it’s the user. If something is overpriced or irrelevant, they’ll leave. India's OTTs are among the cheapest in the world.”

Mishi Choudhary of SFLC cautions against state overreach. “Heavy-handed rules on pricing shouldn’t be part of OTT regulation. Fair disclosures, yes. But businesses must have the freedom to test commercial models.”

A Tipping Point?

Even so, the pressure is mounting. In India, where average household incomes range between Rs 23,000– Rs 25,000 and digital literacy varies, OTTs are no longer just entertainment—they're part of the broader digital economy.

“Paywalled content and ad tiers threaten to deepen India’s digital divide,” says Sonakshi Yajurvedi of Jajabor Brand Consultancy. “Streaming platforms shape cultural narratives and public discourse. Their pricing must reflect social responsibility, not just profitability.”

Nisha Singhania of Infectious Advertising adds that while innovation is vital, “some level of regulation may be necessary to prevent market distortion and ensure fairness.”

The government, thus far, has maintained a light-touch stance on OTT pricing. But experts warn that could change. TRAI’s regulation of DTH pricing through the New Tariff Order was born of similar opacity. If OTTs don’t self-correct, pricing regulation could be next.

Mohit Hira of Myriad Communications sees it as inevitable. “If global platforms don’t maintain integrity in India, they’ll face consequences. We’ve seen it happen in the cable sector.”

He points out how pricing varies by country for almost all products and platforms, and tends to include different bundles of benefits. But, yes, transparency would be appreciated.

Read more: OTT platforms go ‘family-friendly’ as govt mulls OTT broadcast policy

"Clever marketers will get consumers hooked to something, and then start adding fees for additional benefits. But ethical marketers will spell that out upfront. There are many Indians who are acutely price sensitive, but there are also many who will happily pay a higher consolidated fee for a full bundle. And perhaps there are folks who don’t realise that an Amazon Prime membership also comes with shopping benefits."

A Choice Before the Industry

Prime Video says it’s committed to clarity. It claims to be using prominent visual indicators and intuitive badges to guide users through what’s included with Prime and what requires additional payment. Additionally, added features like Prime Lite (Rs 799/year), a low-cost, single-device HD plan with essential shopping and entertainment benefits, has been designed with affordability in mind.

Yet for many consumers, the challenge isn’t availability— it’s understanding. Unless OTT platforms simplify pricing, adopt standardised labels, and present upfront cost summaries, consumer trust will continue to erode.

Experts say the time for voluntary reform is now. A co-regulatory framework, led by industry but backed by independent audits and dispute redressal, can protect consumers and sustain innovation. Because if OTTs don’t regulate themselves today, the government just might do it tomorrow.