But you can pay for YouTube Premium, they already have an alternative to an ad supported business model.
If you frame it in a different context it sounds ridiculous. "Actually we're getting out of the video streaming business and just mailing you postcards that we think look neat. Still charging you the same rate every month, though."
You're going to have to pay an additional $3/mo for no ads along with your existing $15/mo (Prime), $139/yr (Prime) or $8.99 (Prime Video only) plans.
This doesn't look like subsidizing to me. To me it looks more like "pay us more because we can do whatever we want".
https://www.aboutamazon.com/news/entertainment/prime-video-u...