Strategy Analytics has released the results of a new survey which validate Amazon's decision to bundle Prime Instant Video with free 2-day shipping in its Amazon Prime service. Although Prime members say they're more likely to subscribe to Prime for the shipping benefit than for the videos, once they have the Prime service, they watch the videos almost as they much as they use their Netflix subscriptions.
The survey revealed that 59% of U.S. Amazon Prime members used Instant Video in the past month, almost at parity with the 63% of Prime members that used Netflix. Overall, the survey found that 36% of Prime members only used Instant Video, almost equal to the 40% that only use Netflix, and the 23% that use both. The 40% of Netflix-only's are clearly a huge target for Amazon to pursue as it builds out the Prime Video benefit.
After a week off for R&R, I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 146th edition of the VideoNuze-TDG Report podcast. Colin is at the IBC conference in Amsterdam this week, so his audio isn't quite as good as usual. There, he attended a fascinating presentation by a Unilever executive on how the company is adapting its advertising to the realities of a multi-screen world. Colin shares his reactions, particularly to how Unilever is creating its own online content in order to engage its audience in ways not possible with traditional TV advertising.
Shifting gears, we then discuss Amazon's aggressive content licensing blitz that I wrote about earlier this week. Having spent hundreds of millions of dollars licensing premium content over the past 15 months in support of its Prime Instant Videos, I think it's pretty clear that Amazon has emerged as the strongest new competitor to Netflix. Colin agrees, but reminds us that although content parity is critical to competitiveness, user experience matter as well. On this front, we agree Amazon still has a lot of work to do to match Netflix. Listen in to learn more!
Click here to listen to the podcast (23 minutes, 41 seconds)