According to Parks Associates’ OTT Video Market Tracker, which analyses current market trends and activity, Amazon Prime Video memberships are at 45 percent. According to new consumer research from Parks Associates’ Video Services Dashboard, Amazon Prime Video has a subscriber penetration rate of 45 percent of U.S. internet households as of Q3 2021.
The firm’s OTT Video Market Tracker was updated recently, and it highlights key industry and consumer trends, including Amazon Prime’s recent price hike. “Amazon’s fourth Prime price increase comes just a month after Netflix upped its rates, and Hulu raised its costs last year,” said Eric Sorensen, Senior Contributing Analyst at Parks Associates.
“Amazon also launched its Lord of the Rings trailer during this year’s Super Bowl, indicating that the company believes the value they’re offering in content would overcome any consumer apprehension about paying higher pricing.”
With inflation and the cost of content on the rise, we should expect to see more subscription providers gradually raise their pricing, attempting to strike a balance between revenue growth and consumer value.”
According to Parks Associates, 77.3 million U.S. homes were members of Amazon Prime in the first quarter of 2021, with 71 percent of them watching Prime Video. Along with Netflix, Disney+, and Hulu, Amazon Prime Video is one of the four pillars of the consumer streaming stack.
Amazon Prime Video is one of several Amazon membership advantages, but the company, like its OTT competitors, is investing in original content to keep its subscribers interested, attract new subscribers, and entice cord cutters and service hoppers.
This year, many OTT providers produced Super Bowl ads to promote not just one title but their whole content collection, reminding viewers of the total worth of each subscription. “Amazon has properly evaluated these pricing increases as part of its long-term objective to generate more income from members over time,” Sorensen added.
“Supply chain and rising shipping costs are being passed on to customers, but Prime members are unlikely to object to a $20-per-year membership increase, the first in four years.” Parks Associates’ yearly OTT Video Market Tracker includes monthly updates on trends and market activity in the OTT video domain, as well as extensive tracking of established and developing competitors and quarterly subscriber projections.