Amazon’s Streaming Model is Stiff Competition for Netflix


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Netflix is still the #1 streaming service in the United States, but Amazon is a healthy rival in the streaming business. Amazon’s success can at least in part be credited with their business model.

 

 
While Netflix only offers streaming and rented DVDs to their customers, Amazon’s Prime members (those who pay a yearly subscription fee) are able to access both streaming content that comes free with their subscription and additional paid content.

 

The Consumer Intelligence Research Partners (CIRP) recently released a study that showed that the combined free and fee-based streaming on Amazon Prime from its members amounts to more views per month (13.4) than Netflix (12.7).

Mike Levin who co-founded CIRP recently told Business Insider in reference to this report, “Amazon Prime customers use the free streaming video that they receive with their membership somewhat less than Netflix members use their service. But Amazon Prime customers also buy or rent additional video using Amazon Instant Video, say when a video is not available on the Prime streaming service.”

CIRP also reported that Amazon Prime now has 40 million subscribers which slightly edged out Netflix who has 39.1 million subscribers. Both Netflix and Amazon have gained subscribers not only from their catalog of films and television shows but by producing their own original content. (Netflix – Orange is the New Black & Amazon – Transparent).

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