Amazon Video and Its Competition
Amazon's Video Streaming services have quietly been gaining market share in 2016. While Netflix still holds a majority of the market with 120 million users, Amazon.com holds the second largest share of the Video Streaming Market with 76.2 million users, 3 million more than originally forecasted. As the Video Streaming Market develops many companies are changing their business models.
A Maturing Market Puts Focus On Brand Positioning
Netflix is slowly migrating to all original content and increasing their prices. Netflix has invested billions in its original content and it has helped the company enjoy market growth over the last 3 quarters this year. But Netflix is not the only service investing in original content. Boston Consulting Group estimates that Amazon.com invested nearly $3.2 Billion dollars in 2016 on original content, second only to Netflix. Amazon also takes up a different position to Netflix with it's Amazon channels program where it offers 75 different video streaming apps including popular cable channels.
How Americans Stream Their TV
Another key feature fueling Amazon video streaming success and growth is the success of their "Fire TV" device. Google's Chromecast is currently America's favorite streaming device and is expected by eMarketer to retain majority market share through 2020. Amazon Fire is the fastest growing streaming device and the product's user base is expected to double by 2020. Amazon Fire allows for seamless access to shop on Amazon.com's media marketplace on your TV, is a platform for streaming Amazon's original content and Amazon Channel applications.
Amazon Video Positioned For Future Success
As the Video Streaming Services market matures in America companies will need to differentiate themselves to continue growth. Amazon takes up a unique position in the market pairing it's video streaming services with a popular video streaming device. With its Amazon Channels program, this combination creates a competitive business model that can compete and grow into the future alongside video streaming brands like Netflix and HBO.
source: "Amazon Prime Growing Fastest Among Streaming Video Services - EMarketer." N.p., 24 Oct. 2016. Web. 04 Nov. 2016.