For those who think Amazon has the clout to steal away Netflix subscribers, the logic there isn’t too easy to follow: the $9 price point for the new service simply isn’t compelling enough to siphon away any meaningful portion of the Netflix sub base, and the Amazon library of originals and licensed TV shows and movies isn’t substantially better, either.
It’s more likely that Bezos is betting that Netflix subs are willing to pay for a second or third SVOD option (Hulu) than putting a dent in the competition. Parks Associates recently estimated that 52% of U.S. broadband homes take Netflix–almost half of what Amazon Prime has managed, and 14% for Hulu.
From the article "Netflix Need Not Fear New Amazon Prime Spinoff Service" by Andrew Wallenstein.
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According to Parks Associates, 50% of U.S. broadband households surveyed consider $20 or more per month for a comprehensive smart home service to be a good value. More than 26 million U.S. households...
“There seemed to be an attitude around the industry that after House of Cards and Orange is the New Black, there was no way Netflix could catch lightning in a bottle again,” says Glenn Hower, a senior...
When it comes to market share, no other streaming platforms are close to Roku and Fire TV. Roku has the lead right now: 37% of streamers opt for Roku devices, compared to 28% for Fire TV. Other stream...
