Seeking Alpha

Amazon begins marketing Prime Instant Video

  • Amazon (AMZN -0.7%) has taken a low-key approach to marketing Prime Instant Video even as its content library has swelled to include 40K+ movies and TV episodes, but that might be starting to change. The company recently began airing a TV ad (video) trumpeting Prime Instant's library and relatively low cost.
  • Prime Instant comes bundled with a $79/year Amazon Prime subscription. As with many other things, Amazon has provided few details about usage rates for the service, which the company has spent hundreds of millions (if not more) to build out.
  • The fact Amazon doesn't provide a monthly subscription option for Prime has held back Prime Instant's growth relative to Netflix (NFLX -1.8%) which had 31.1M U.S. subs at the end of Q3. But with Prime subscription growth having apparently picked up lately, the service is nonetheless now available to quite a few U.S. consumers.
  • Amazon recently proclaimed it now has "tens of millions" of Prime subs, and CIRP estimated last month the Prime subscriber base had grown to 16.7M.
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Comments (16)
  • Mark Krieger
    , contributor
    Comments (4561) | Send Message
     
    AMZN is going after NFLX, and in a big way.
    2 Jan 2014, 03:13 PM Reply Like
  • Bio Bull
    , contributor
    Comments (252) | Send Message
     
    I like Amazon Instant Video... curious whether having their own set-top box, as rumored, will enhance the experience. I'm staying with Amazon and just cancelled Netflix.
    2 Jan 2014, 04:42 PM Reply Like
  • n403xv
    , contributor
    Comments (53) | Send Message
     
    I currently have Prime(30 day trial), Netflix and Hulu.

     

    Prime has a better selection than Netflix in my opinion.

     

    We will be cancelling Hulu, but probably not Netflix as we have the AppleTV ... I can stream Prime to the AppleTV via my ipad, but it is not optimal. Netflix is a native selection.
    2 Jan 2014, 05:47 PM Reply Like
  • Bio Bull
    , contributor
    Comments (252) | Send Message
     
    Apple TV is a good device. Roku does that function extremely well too! I was pleasantly surprised with Roku.

     

    Though PS3 and Xbox both do it also, the system updates can be annoying if you simply want to watch a movie on Amazon or Netflix.
    2 Jan 2014, 05:53 PM Reply Like
  • norjud
    , contributor
    Comments (328) | Send Message
     
    I have Roku also...It works great. Low cost. I have Netflix and love it. I cut my cable and I'm saving a bunch. I also have OOMA for my home phone service. It works great. You plus it into your wireless router and one into your phone. I did buy Panasonic digital phones (4)...works great my bill last month was $3.71. I cut Verizon out also. I

     

    The only thing I miss during football season is ESPN.
    2 Jan 2014, 07:30 PM Reply Like
  • Jake Nonnemaker
    , contributor
    Comments (2) | Send Message
     
    I use both Netflix and Amazon Prime Instant VIdeo. The Prime Instant Video library can't hold a candle to the size of the Netflix library in size and quality. Only a few Prime Instant Video movies and shows are free and those aren't very popular. Netflix has the popular ones all tied up.

     

    What I like about Prime is that even if a movie is not in their free library there is usually an option to rent it for $4-$5 (or buy it for $20 or so).

     

    Amazon's Instant Video app for IOS is crippled in that users can't just start watching non-free video immediately. The user must first go to a computer and rent the video then they will be able to switch back to the iPad or iPhone to watch it. That's a very cumbersome process.
    2 Jan 2014, 08:11 PM Reply Like
  • Bio Bull
    , contributor
    Comments (252) | Send Message
     
    Do you think the limitation on Amazon Instant Video on IOS devices is a limitation imposed by Amazon on itself or by Apple? I don't have the answer, but I could see Apple having concerns about an alternate movie and music market being available on their platform.
    2 Jan 2014, 10:07 PM Reply Like
  • Tvaddic
    , contributor
    Comments (271) | Send Message
     
    Apple requires a 30% cut if you want to allow purchases in their apps.
    2 Jan 2014, 11:49 PM Reply Like
  • Bio Bull
    , contributor
    Comments (252) | Send Message
     
    That would pretty much explain it then! 30% is ridiculous and there is no way Amazon would do that.
    3 Jan 2014, 12:47 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1848) | Send Message
     
    I cut cable years ago, and I have been a long-term customer of Netflix, both for its streaming and the DVD rental. It is a good service.

     

    Recently I got the Roku2 to improve my Netflix streaming. (Unlike my older Blu-ray streamer, the Roku2 supports captions.) And then, even more recently, I have joined Amazon Prime, mainly for the shipping--but now I am streaming the Prime content through my Roku2 as well, and liking it.

     

    The long and the short of it is that both the Netflix and Amazon Prime streaming services are good. There is some overlap, and yet there is some good stuff that each has that the other lacks, enough to justify subscribing to both. So...I plan to keep both, as well as the Netflix DVD service, which fills a lot of the remaining gaps. With all of that, I still pay relatively little and cannot ever see going back to a cable or satellite subscription.

     

    I do plan to strictly avoid the numerous pay-per-view temptations on Amazon, as they are often offering me extra content that is not on Amazon Prime and could add up to a lot.

     

    With the low cost of both Netflix and Amazon Prime, how can they really be seen as competitors? I wish the best for both and recommend them both.

     

    As for stock market fortune-hunting, I will say that I have taken profits on most (but not all) of my 2012 Netflix purchase and I am starting to pay close attention to Amazon.
    2 Jan 2014, 08:14 PM Reply Like
  • Chiipy-Nostradamus
    , contributor
    Comments (100) | Send Message
     
    I have Amazon Prime, and I absolutely love it
    2 Jan 2014, 09:20 PM Reply Like
  • Vking Cheese God
    , contributor
    Comments (2) | Send Message
     
    Roku is the only way to go. I cut cable years ago and have been watching netflix and prime almost exclusively. (on Sundays during the winter I watch football, the only time I watch regular TV)

     

    I think Netflix is an overpriced stock but Amazon has a ways to run yet.
    2 Jan 2014, 09:52 PM Reply Like
  • papayamon
    , contributor
    Comments (1190) | Send Message
     
    heck, this reminds me that it's time to watch "Sharknado"!
    3 Jan 2014, 12:08 AM Reply Like
  • 696
    , contributor
    Comments (3) | Send Message
     
    I watched Sharknado last week,
    i give it an f +.
    3 Jan 2014, 04:44 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1848) | Send Message
     
    When you use streaming, the "time" to watch something is always up to you, not some channel programmer.
    3 Jan 2014, 06:02 AM Reply Like
  • papayamon
    , contributor
    Comments (1190) | Send Message
     
    it was just so stupid i had to watch it through. i love that here we have this terrible disaster, yet they drive a few blocks and everything is normal and people are just milling around oblivious .. then those pesky sharks drop from the sky.
    3 Jan 2014, 10:54 AM Reply Like
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