The fight against labeling long-term streaming rentals as “purchases” you “buy”

Words have meaning. Proper word selection is integral to strong communication, whether it's about relaying one’s feelings to another or explaining the terms of a deal, agreement, or transaction.

Language can be confusing, but typically when something is available to "buy," ownership of that good or access to that service is offered in exchange for money. That’s not really the case, though, when it comes to digital content.

Often, streaming services like Amazon Prime Video offer customers the options to “rent” digital content for a few days or to “buy” it. Some might think that picking "buy" means that they can view the content indefinitely. But these purchases are really just long-term licenses to watch the content for as long as the streaming service has the right to distribute it—which could be for years, months, or days after the transaction.

A lawsuit [PDF] recently filed against Prime Video challenges this practice and accuses the streaming service of misleading customers by labeling long-term rentals as purchases. The conclusion of the case could have implications for how streaming services frame digital content.

New lawsuit against Prime Video

On August 21, Lisa Reingold filed a proposed class-action lawsuit in the US District Court for the Eastern District of California against Amazon, alleging "false and misleading advertising." The complaint, citing Prime Video’s terms of use, reads:

On its website, Defendant tells consumers the option to 'buy' or 'purchase' digital copies of these audiovisual works. But when consumers 'buy' digital versions of audiovisual works through Amazon’s website, they do not obtain the full bundle of sticks of rights we traditionally think of as owning property. Instead, they receive 'non-exclusive, nontransferable, non-sublicensable, limited license' to access the digital audiovisual work, which is maintained at Defendant’s sole discretion.

The complaint compares buying a movie from Prime Video to buying one from a physical store. It notes that someone who buys a DVD can view the movie a decade later, but “the same cannot be said," necessarily, if they purchased the film on Prime Video. Prime Video may remove the content or replace it with a different version, such as a shorter theatrical cut.