Americans are more likely to subscribe to Amazon Prime for free two-day shipping than for the tech giant’s Prime Instant Video, according to a new study from Strategy Analytics. The research showed that 63 percent of U.S. Prime subscribers use Netflix compared to 59 percent who used Amazon’s SVOD service. “Amazon is needlessly ‘losing’ users to Netflix when, in fact, it should be eating into their user base,” Strategy Analytics’ Digital Media Analyst Leika Kawasaki said. “One avenue [to correct that] is to entice more people to use Amazon devices, such as the Kindle and Fire TV, as these owners are 10% more likely to use Prime Instant Video regularly. However, this won’t be easy; Amazon has not had the same level of success as Apple in creating a unified ecosystem of device and services.” Other key highlights include:
– 40 percent of U.S. Amazon Prime subs use Netflix only, 36 percent use Prime Instant Video only and 23 percent use both.
– Less than half (44%) of Amazon Prime subscribers in the U.S. use Prime Instant Video at least once a week, compared to 55% in Germany and 54% in the U.K.
– Among online U.S. adults not currently subscribing to Amazon Prime, 12 percent are “somewhat likely” to subscribe in the next year, while 4 percent are “very likely” to subscribe. The main reason people won’t subscribe (cited by 53 percent of respondents) is the price is too high.