Amazon Streaming Video is Different than Netflix and the Rest
Lots of debate and heartache in the world of streaming video content lately. Everyone but Netflix (and even them, a little) bemoans how demand for paid streaming services appears on the verge of collapse.
We haven’t seen Amazon mentioned in this, though. We suspect Amazon has escaped scrutiny in part because Amazon discloses nothing useful about its video services. We hope to make a small contribution to understanding where Amazon fits in the debate.
Right away we note Amazon’s streaming video service is a little different from Netflix, other streaming services (Disney+, Max, and many others), and cable TV. Amazon’s primary streaming video offering is Amazon Prime Video, which is an added benefit of Amazon Prime membership, not a stand-alone service that requires a specific purchase decision. Amazon also resells other streaming video channels and has a robust streaming video rental and sale business.
So, here we analyze Amazon Prime Video. We find that while it has grown in the past several years alongside the other services, it too has seen something of a change in demand.
Over the long term, Prime video has grown in popularity among Amazon customers. The share of Prime members reporting that they use the streaming video service has steadily increased since 2019 (Chart 1).