Strategy Analytics Press Releases


Amazon Prime Subscribers More Likely to Use Netflix for Video

by Leika Kawasaki | Apr 08, 2015

Free 2-day shipping a bigger driver of U.S. subscriptions than video, unlike other countries

Boston, MA – April 8, 2015. Amazon Prime subscribers in the U.S. are more likely to use Netflix than Prime Instant Video, according to global intelligence firm Strategy Analytics.

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Nearly two-thirds (63%) of Amazon Prime subscribers used Netflix in the previous month compared to 59% who used Prime Instant Video.

Nearly two-thirds (63%) of Amazon Prime subscribers used Netflix in the previous month compared to 59% who used Prime Instant Video.

“In contrast to countries such as the UK and Germany, Americans are more likely to subscribe to Amazon Prime for free 2 day shipping than for Prime Instant Video,” said Leika Kawasaki, Strategy Analytics’ digital media analyst. “For example, Americans are twice as likely as Britons to cite free 2 day shipping as ‘very important’ in deciding to subscribe and they’re less likely to use the video service regularly.”

Less than half (44%) of Amazon Prime subscribers in the U.S. use Prime Instant Video at least once a week, compared to 55% in Germany and 54% in the U.K.

Americans are twice as likely as Britons to cite free 2 day shipping as ‘very important’ in deciding to subscribe and they’re less likely to use the video service regularly.


“Amazon is needlessly ‘losing’ users to Netflix when, in fact, it should be eating into their user base,” says Kawasaki. “Amazon Prime offers subscribers multiple benefits, there are more Amazon-capable devices and the subscription is slightly cheaper. Yes, Prime Instant Video has been lagging behind Netflix in original programming but it’s been making significant moves to address this recently.”

“One avenue is to entice more people to use Amazon devices, such as the Kindle and Fire TV, as owners of these are 10% more likely to use Prime Instant Video regularly. However, this won’t be easy, Amazon has not had the same level of success as Apple in creating a unified ecosystem of device and services.”

Strategy Analytics research shows that among online U.S. adults not currently subscribing to Amazon Prime, 12% are ‘somewhat likely’ to subscribe in the next year, while 4% are ‘very likely.’ The main reason people won’t subscribe (cited by 53% of respondents) is the price is too high.

Report Authors
Leika Kawasaki, Strategy Analytics, +1 617 614 0738, lkawasaki@strategyanalytics.com 
Michael Goodman, Strategy Analytics, +1 617 614 0769, mgoodman@strategyanalytics.com

 
 

Press release contact

Leika Kawasaki
Phone number:+1 617 614 0738
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