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.
“They have a unique proposition, not just compared with Netflix but also with YouTube TV or Sling,” said Hunter Sappington, an analyst with Parks Associates, in an interview with Deadline. “They have...
But what makes Spain unique in Western Europe is that about half of households have broadband but not pay TV, one of the highest internet-only household rates in Europe, according to research firm Par...
Parks Associates revealed that 27% of U.S. car owners would connected cars to communicate with the Internet-connected devices in their home, such as smart garage door openers and door sensors. Park...
Unlike seven years ago, the move pushed Netflix’s stock to new heights. The key, for Netflix’s management, was learning to raise prices without spooking subscribers—by doing so in small and infrequent...
