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.
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“There’s only so many consumers out there that are willing to pay full price,” said a research analyst with Parks Associates From the article, "How Netflix is adapting as the streaming boom stalls....
Password sharing cost streaming companies about $9.1 billion last year, according to data from the research firm Parks Associates. From the article "The streaming wars are flooding us with TV".
