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Netflix Need Not Fear New Amazon Prime Spinoff Service

For those who think Amazon has the clout to steal away Netflix subscribers, the logic there isn't too easy to follow: the US$9 (RM35) 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 US broadband homes take Netflix-almost double what Amazon Prime has managed, and 14% for Hulu.  

From the article "Netflix Need Not Fear New Amazon Prime Spinoff Service" by Andrew Wallenstein.

Previously In The News

NAB 2018 Day Two: Online video, trends in sports business, could podcasts create TV content?

“In 2018, the leading services will be competing based on original content, and companies are already shelling out millions on content creation; and that trend will continue,” Brett Sappington, senior...

How to Decide If Cord Cutting Is Right for You

This lack of local channels is one reason that more households are using antennas, pulling in free over-the-air high-definition signals. In fact, Parks Associates, a research firm, estimates that one-...

Video Entertainment Spending Drops in the US

According to the research firm, there has also been a decline in multiplatform usage among households, as use rates on individual screens declined despite the fact that overall video viewing has held...

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According to a Parks Associates report, Roku was the leading video streaming device in the U.S. followed by Chromecast and Apple TV in 2014. "The research finds Roku is still the leading brand with...

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