Amazon Prime Video was in 45% of U.S. Internet households as of the third quarter of last year, according to Parks Associates’ OTT Video Market Tracker.
The firm said that at the end of the third quarter of last year, 77.3 million U.S. households were Amazon Prime members and 71% of them watched Prime Video, which is one of the benefits that membership brings. Amazon Prime Video, like other OTT providers, is investing in original content. to satisfy current subscribers, appeal to new subscribers and attract cord cutters and service hoppers.
Amazon Prime Households
At the same time, the company and the broader industry segment is navigating price hikes during a time of an uncertain economy.
“Amazon’s Prime pricing rise, the fourth in its history, comes barely a month after Netflix raised its fees, while Hulu raised its prices last year,” Eric Sorensen, Parks’ Senior Contributing Analyst, said in a press release.” Amazon also debuted its Lord of the Rings trailer during the Super Bowl this year, so the firm obviously hopes the value they are bringing in content will offset any consumer reluctance to pay higher prices. With inflation and the cost of content on the rise, we will likely see more providers start to slowly raise their subscription prices, trying to find that balance between revenue growth and consumer value.”
Sorensen said that the price increases “have been fully vetted out” in the company’s long term strategy, with supply chain and higher shipping costs being passed on to consumers. He considers it doubtful that the $20 rise in Prime’s membership fee, the first hike in four years, will be objected to by members.
This year, Prime’s annual membership fee is $139. It was raised three other times. It was $119 in 2018, $99 in 2015 and $79 in 2005.
The three other foundations of the consumer streaming segment are Netflix, Disney+ and Hulu, Parks said.