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 double what Amazon Prime has managed, and 14% for Hulu.
From the article "Netflix Need Not Fear New Amazon Prime Spinoff Service" by www.newsmax.com
“First-time adoption of pay TV is up among Spanish broadband households as is the penetration of pay TV overall. The Spanish pay-TV market in general has a very active, cost-conscious base of subscrib...
Parks Associates has announced that the churn rate for OTT video services is 19% of US broadband households, indicating roughly one in five households have cancelled an OTT service in the past 12 mont...
Amazon and Roku both have greater distribution in the U.S. than Apple TV. According to a Parks Associates report from last May, Roku has a 37 percent market share in the U.S., followed by Amazon Fire...
So notes a recent report from Parks Associates, which found that 43 percent of all broadband households in the U.S. that use — or plan to use — a smart TV or streaming media player want to be able to...
