Amazon Prime Instant Video a Hot Spot for Transactional VoD

by Parks Associates | Oct. 10, 2014

New research released by Parks Associates this week reveals that approximately two-thirds of Amazon Prime Instant Video subscribers also rent or purchase titles through the service, and their average expenditures are increasing. These findings emphasize the potential role of transactional services to supplement subscription OTT.

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“Amazon is certainly getting traction in the market — especially when compared against Hulu Plus,” Brett Sappington, director of research at Parks Associates, said in a statement in May. "Amazon's growth shows how dynamic the OTT [over-the-top content] space truly is. Over-the-top content refers to media distributed by a third party to a user usually over the Internet and without the use of a cable or satellite network. “While Netflix remains the dominant player, consumers are still open to alternatives with interesting content and business models."

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Amazon gains edge over Netflix in transactional expenditure

New research from analyst Parks Associates has revealed the growing commercial clout of online video and OTT in particular Amazon Instant Video which is now a transactional hot spot.

The research found that just over a third (37%) of US broadband households regularly use transactional services for over the top video, such as online video rentals and downloads. The vast majority of consumers making these a la carte purchases also have a streaming video subscription, emphasising the potential role of transactional services to supplement subscription OTT. 

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Almost two fifths of US broadband homes use transactional VoD

The research firm said that roughly two thirds of Amazon Prime Instant Video subscribers also rent or buy titles through Amazon, with the “vast majority” of SVoD customers also making a la carte purchases.

“Subscription services are the most popular form of OTT video, but a transactional service that offers a wide selection of titles and easy-to-use controls can score with consumers and create new revenues,” said Barbara Kraus, director of research, Parks Associates.

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Next: HBO Turns Up the Heat on Netflix with Planned Streaming Service in 2015
Previous: OTT Video Rentals and Purchasing Trends

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