Despite the recent addition of partners to its Platinum Card, American Express has seen a plunge in digital entertainment spending. With the new credit card program comes faster payments and greater customer satisfaction – so will this be enough for Amex to see an increase?
The “amex platinum” is a new Amex card that offers benefits for digital entertainment. The card’s benefits include access to exclusive events and discounts on movie tickets, streaming services, and other digital content.
Amex Adding Partners To Platinum Card Digital Entertainment Credit Winners And Losers
on April 7, 2022 by Gary Leff
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The announcement that the digital entertainment credit that comes with The Platinum Card® from American Express has been expanded to include additional services where you may spend the credit has been covered by a number of websites. What I haven’t seen much debate about is why this is happening and who profits from it. As it were, ‘just the facts, ma’am.’
All of these statement credits aren’t being paid at face value by American Express. There will be breakage (not all of the credits will be redeemed), and the restricted number of merchants where you may spend the credit will kick in – whether they cover the whole amount or just a portion of it will depend on the specific offer.
Although the Platinum Card® from American Express features enticing incentives, a part of the value it provides to cardmembers is not covered by American Express.
First, new cardmembers get 100,000 Membership Rewards® points after spending $6,000 on purchases with their new card in the first six months. Those points are recorded on Amex’s books, of course.
Access to American Express Centurion airport lounges is gratis with the card. The Centurion Network has grown to include more than 40 Centurion Lounge and Studio locations throughout the globe, according to American Express. There are many more venues where your Platinum Card might offer you free admission and exclusive rewards.
Individual cardmember access to Delta lounges while flying Delta same-day, as well as a Priority Pass Select membership that grants cardmember access to Priority Pass lounges, including Plaza Premium and Escape lounges. Whether it’s their own lounges, where they pay rent and eat, or partner lounges, where they pay an admission charge, lounge access costs real money.
You may also take advantage of a variety of statement credit advantages.
- When you pay with your Platinum Card, you’ll get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection reservations via American Express Travel, which require a minimum two-night stay. They usually get a percentage on the booking, so it isn’t free, and the commission will be higher for a two-night or longer stay.
- $240 Digital Entertainment Credit: Get up to $20 in monthly bill credits when you use your Platinum Card® to pay for qualified purchases at one or more of the following providers: Audible, Disney+, The Disney Collection, ESPN+, Hulu, Peacock, SiriusXM, and The New York Times is a newspaper published in New York City. are just a few of the services available. It is necessary to enroll. These are deals that are at least partly supported by merchants.
- $200 Airline Fee Credit: Get up to $200 in statement credits each calendar year at one qualified airline for baggage fees and more. Southwest has been my preferred airline for the last several years, and I’ve had fantastic luck with them.
- $200 Uber Cash: Earn Uber VIP status and save up to $200 on trips or food purchases in the United States each year. Only Basic Card Members have access to Uber Cash and Uber VIP status. This is a merchant-funded deal, so it won’t cost you back $200 to deliver. It’s persuading you to use Uber every month if you want to spend at least some of your credit.
- When you pay with your Platinum Card®, you may get up to $25 back each month on the Equinox+ digital fitness app or qualified Equinox club memberships. It is necessary to enroll. Another offer backed by a merchant.
- $179 CLEAR® Credit: Use your Card to earn up to $179 off your CLEAR® membership each year. The financial details are kept under wraps, but this merchant-funded offer might be linked to American Express’ relationship with Delta, which holds a share in CLEAR.
- $155 After you pay for Walmart+ each month using your Platinum Card, you’ll get a bill credit to cover the cost of a $12.95 monthly subscription. The price includes $12.95 in addition to any applicable local sales tax. I’d like to remind out that the new Walmart+ CEO is a 20-year veteran of American Express.
Many of these offerings enable me to produce more value for myself than the card’s yearly charge. Then I get to utilize it to earn 5X Membership Rewards Points when I book flights directly with airlines (up to $500,000 per calendar year). It also grants me Hilton Gold status. This card has an annual charge of $695. (See rates and fees).
Prior to the release of the new digital entertainment credit, you may utilize the $20 per month (totaling $240 per year) advantage to:
- Audible
- Peacock
- SiriusXM
- The New York Times is a newspaper published in New York City.
They’ve now added the following new partners:
- Disney+
- The Disney Collection
- ESPN+
- Hulu
You could think this is fantastic, a win-win situation for everyone involved, and you’d be right from a customer standpoint and almost likely from an American Express one. But I believe it is a little more difficult than that.
- Benefits from using American Express. The digital entertainment credit is more appealing since it is believed to provide greater value to cardmembers, making it more appealing to get and keep the card.
American Express also benefits since the benefit isn’t harmed if one of their partners doesn’t renew – it’s typically more useful to participate once and acquire exposure to consumers than than continuing to provide them discounts. They might lose a few participants and still believe the service is as wonderful as it was when it first began, with the same number of partners or more. Because merchant-funded deals aren’t always sustainable, having a consistent pipeline of partners is essential to keeping the value proposition alive.
- Consumers profit from this. There’s a better chance they’ll utilize the digital entertainment credit, and use it all, so their card will be worth more.
- New entertainment credit-eligible services potentially benefit. Disney, The Disney Collection, ESPN+, and Hulu get introduced to more Platinum cardmembers, who in general are good (well-off, with disposable income) customers to have.
Pre-existing digital entertainment credit-eligible companies potentially lose. It’s possible that the new additions are so attractive that more people acquire and keep the Platinum card, and enough of them become new customers of Audible; Peacock; SiriusXM; and The New York Times is a newspaper published in New York City. that this is a net positive for the originally-participating services.
However being a part of a small number of services where cardmembers could use their credit was focal. Many members would look and see they had just a handful of places to spend their $20 per month credit, and become customers of one of those four. Now they’ll have four new options for spending their credit, and each is only one of eight instead of one out of four. There’s a good chance, then, that the digital entertainment credit becomes less of a driver of new customers than it would have when there were fewer eligible ways to spend the credit./ul>
Click here to see the rates and fees for American Express’s Platinum Card®.
More From the Wing’s Perspective
The “peacock amex offer” is a promotion that rewards users with a $200 credit towards digital entertainment. This includes movie tickets, concert tickets, and more.
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