Dallas— New data from Parks Associates’ Video Services Dashboard reveals that Amazon Prime Video’s subscriber penetration rate was 45% of US Internet households as of Q3 2021.
Amazon and other carriers released the park data as they hiked rates.
Amazon announced in February that the annual fee for Prime Video would increase from $119 to $139, and on April 6 it raised prices for its music service.
“Amazon’s Prime price hike, the fourth in its history, comes just a month after Netflix raised its rates and Hulu raised its prices last year,” said Eric Sorensen, senior contributor analyst at Parks Associates. “Amazon also debuted its ‘Lord of the Rings’ trailer during this year’s Super Bowl, so the company is clearly hoping that the value they bring to the content will offset any consumer reluctance to pay higher prices. With inflation and the cost of content rising, Many providers will begin raising their subscription prices slowly, trying to find that balance between revenue growth and customer value.
Parks Associates estimates that 77.3 million US households were members of Amazon Prime in the first quarter of 2021, and about 71% of them watched Prime Video.
Amazon Prime Video is one of the four foundations of consumer streaming stock, along with Netflix, Disney+ and Hulu, the researchers noted.
Amazon Prime Video is one of several perks of Amazon membership, but Amazon, like its competitors in the OTT space, is investing in original content offerings to keep its subscribers engaged, encourage new subscribers and attract cord cutters and service hoppers. , the researchers noted.
Many OTT services aired Super Bowl ads this year, promoting not just one title but the range of their content library, to remind viewers of the total value of each subscription.
“These price increases by Amazon are fully vetted as part of their long-term strategy to generate more revenue from subscribers over time,” Sorensen said. “Supply chain and increased shipping costs are passed on to consumers, but it’s doubtful that Prime members will object to the first membership increase of twenty dollars a year in four years.”