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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 $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.

Previously In The News

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OTT video “has reshaped a successful industry,” North Texas-based research firm Parks Associates notes. With that mindset, Parks released a White Paper that analyzes a key focal point for the pay-T...

OTT Sees Healthy Gains In Broadband Homes

Parks’ OTT Video Market Tracker also shows that Netflix, WWE Network and Hulu have the highest word-of-mouth consumer promotion scores. Parks looked at consumer behavior during Q3 2014 and compared...

OTT Annual Churn Rate Dips Slightly

This suggests that the all-important churn rate for services such as Netflix, Amazon Video and Hulu isn’t fluctuating — with 8 out of every 10 U.S. broadband household that has such a service sticking...

Roku's New Streaming Media Players Support 4K And HDR Video

However at least two research firms have reported that Roku is leading the race in the OTT market: Parks Associates said earlier this year that Roku accounted for 30 percent of streaming media players...

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