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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

Majority Of Smartwatch Owners Have Paid Music Streaming Sub

Owners of wearable devices such as smartwatches and fitness trackers are far more likely to subscribe to paid streaming audio or music services such as Apple Music, Spotify or Pandora One, according t...

Report: Antenna Only Homes Increase to 15 Percent

While we’re certainly no longer in the days where people had a pair of rabbit ears on top of their TV sets, the use of antennas are making a little bit of a comeback according to a recent report from...

Roku Plunges: 3 Reasons to Buy, 4 Reasons to Sell

Last August, Parks Associates reported that Roku controlled 37% of the streaming device market in the U.S., while Amazon, Google, and Apple held shares of 24%, 18%, and 15%, respectively. All three of...

AT&T Deal: Merger For New Media Era Or A Bad Remake?

Pay-TV operators are seeing a "slow erosion of the core business," analyst Brett Sappington at Parks Associates said. "After years of attempts to be more than just a 'dumb pipe,' pay-TV operators h...

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