Providing market intelligence for more than 35 years

In The News

Amazon Prime Video Subscription Rate is 45% of U.S. Internet Households

Amazon Prime Video subscriptions rate is 45%, according to Parks Associates' OTT Video Market Tracker, which highlights current market trends and activities.

New consumer research from Parks Associates’ Video Services Dashboard reveals that as of Q3 2021, Amazon Prime Video’s subscriber penetration rate is at 45% of U.S. internet households. The most recent update of the firm’s OTT Video Market Tracker recaps top industry and consumer trends, including Amazon Prime’s recent price rate increase.

“Amazon’s Prime pricing rise, the fourth in its history, comes barely a month after Netflix raised its fees, while Hulu raised its prices last year,” said Eric Sorensen, Senior Contributing Analyst, Parks Associates. “Amazon also debuted its Lord of the Rings trailer during the Super Bowl this year, so the firm obviously hopes the value they are bringing in content will offset any consumer reluctance to pay higher prices. With inflation and the cost of content on the rise, we will likely see more providers start to slowly raise their subscription prices, trying to find that balance between revenue growth and consumer value.”

Parks Associates estimates that in the first quarter of 2021, 77.3 million U.S. households were members of Amazon Prime and that around 71% of them watched Prime Video. Amazon Prime Video is one of the four foundations of the consumer streaming stack, along with Netflix, Disney+, and Hulu.

Amazon Prime Video is one of several benefits of an Amazon membership, but Amazon, like its competitors in the OTT space, is investing in original content offerings to keep its subscribers engaged, to encourage new subscribers, and to lure in cord cutters and service hoppers. Many OTT services aired Super Bowl ads this year, promoting not just one title but the range of their content library, to remind viewers of the total value of each subscription.

“These price increases by Amazon have been fully vetted out as part of their long-term strategy to generate more revenue from subscribers over time,” Sorensen said. “Supply chain and increasing shipping expenses are being passed down to customers, but it is doubtful that Prime members will object to a twenty-dollar-a-year membership rise, the first in four years.”

The OTT Video Market Tracker, an annual service from Parks Associates, features monthly updates on trends and market activities in the OTT video space, including comprehensive tracking of existing and emerging players and quarterly subscriber estimates.

From the article, "Amazon Prime Video Subscription Rate is 45% of U.S. Internet Households" by Jeremy Glowacki.

Previously In The News

AVOD and FAST take the lead: Navigating the new era of advertising – Industry Voices: Sorensen

Parks Associates' Eric Sorensen unpacks the era of ad-supported streaming video, where there's work to be done before consumers get on board. Parks Associates data shows that the vast majority - 88...

Unpacking ESPN, PENN Entertainment’s $2B sports wagering bet – Industry Voices: Sorensen

Parks Associates research shows only 13% of broadband households actually placed a wager within the video stream they were watching. Today many of these technology concerns have seen tremendous improv...

The next frontier of e-commerce is our TVs, thanks to interactive ads

The space is still fairly new, with around 10 million connected TV (CTV) households in the U.S., or 11 percent of device owners, saying they have used their TVs to buy physical goods, according to dat...

Netflix, Disney+, Hulu price hike: With cost of streaming services going up, how to save.

The streaming industry calls all this hopping around “churn” and 36% of streaming customers do it, according to a Parks Associates study.  “If you're diligent and mindful of your spending, you can...