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It would seem that offering the new monthly deal lets Amazon give viewers a way to see current Amazon original series, perhaps in binge mode, a few times a year rather than maintaining the service all year. As more consumers opt for OTT viewing, the Amazon alternative does provide a way to see video on a tighter budget, or sample it without making a larger commitment.
According to new Parks Associates data, Amazon Prime Video has 22.5 million customers, but a churn rate of about 19%. Netflix has 43 million U.S. users and Parks estimates its churn rate over 12 months is only 9%.
From the article "New Amazon Prime Monthly Sub Aims At Netflix" by P.J. Bednarski.
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It also hopes to bring new consumers into the market. The US smart home market has long been plagued by slow growth, largely due to device and platform fragmentation and high prices. However, consumer...
“Netflix should continue to be vigilant and observant of consumer response as it builds out its still-nascent games portfolio, but I don’t believe it should be overly concerned,” said Parks Associates...
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