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Netflix Need Not Fear New Amazon Prime Spinoff Service

April 17, 2016

Yahoo! Finance & News

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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Although it is much smaller than its rivals, Roku is the leading seller of video streaming players in the U.S. with a 37 percent share of the market, according to the research firm Park Associates....

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Overall globally, Parks calculates that there are more than 265 million households worldwide and that there will be more than 400 million OTT video service subscriptions by 2022. While Netflix, Amazon...

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