Download Report

Michael R. Levin (mike@cirpllc,com)
Joshua N. Lowitz (josh@cirpllc,com
111. West Washington Street, Suite 900
Chicago, IL 60602
312.344.3664
www.cirpllc.com
FOR IMMEDIATE RELEASE
The Genius of Amazon Streaming Video
Amazon Customers With Free Prime, Netflix Also Buy More Streaming Video
CHICAGO, IL – December 18, 2013 - Consumer Intelligence Research Partners, LLC
(CIRP) today released analysis of streaming video services from Amazon, Inc.
(NASDAQ:AMZN). This analysis indicates that Amazon customers that use free Prime
streaming video, Netflix subscriptions, or both, rent or buy more significantly more
streaming video from Amazon than other customers.
CIRP surveyed US customers of Amazon.com from the three-month period ending
November 15, 2013. Based on the survey data, we estimate that on average Amazon
customers buy or rent streaming video from Amazon.com 1.1 times per month.
Beyond taking advantage of the library of free streaming video, Amazon Prime
members pay for Amazon streaming video in addition to their free Prime streaming
video. 77% of Amazon Prime members buy or rent streaming video from Amazon,
compared to 44% of non-Prime members (see chart). 18% of Prime members pay for
streaming video from Amazon at least once a week, compared to 3% of non-Prime
members that buy or rent streaming video from Amazon at least once a week.
Frequency of Buy or Rent Streaming Video
60%!
50%!
40%!
30%!
Prime!
20%!
non-Prime!
10%!
0%!
>5x week! 2-5x
week!
1x week!every fewevery few 1-2x year!<1x year! never!
weeks! months!
The Genius of Amazon Streaming Video
“Amazon Prime members buy or rent streaming video much more often, 2.2 times per
month, compared to 0.4 times per month for non-members,” said Josh Lowitz, Partner
and Co-Founder of CIRP. “Once accustomed to searching for streaming video at
Amazon, those Amazon Prime free streaming video customers become the best and
likely most profitable customers for Amazon’s paid streaming video business. These
Amazon Prime free streaming video customers turn out to be Netflix subscribers in large
numbers, too.”
60% of Amazon customers also have a Netflix subscription (see chart).
Netflix Subscriptions of Amazon Customers
none 40% DVD 2% streaming 42% both 16% “Netflix has a positive impact on frequency of paid Amazon streaming video use, as
well,” said Mike Levin, Partner and Co-Founder of CIRP. “For both Amazon Prime
members and non-members, use of video, both free and paid streaming, is higher for
Amazon customers that also have a Netflix subscription. Based on the survey data, we
estimate that Amazon customers that are also Netflix members buy or rent Amazon
streaming video 1.4 times per month. In contrast, Amazon customers that are not Netflix
members buy or rent Amazon streaming video 0.8 times per month.”
CIRP based these findings on its survey of 300 subjects who made a purchase at
Amazon.com in the three-month period ending November 15, 2013. For additional
information, please contact Mike Levin ([email protected]) or Josh Lowitz
([email protected]) at 312.344.3664. Further information on CIRP, which provides
securities research to the investment community using advanced consumer market
research strategies, methods, and techniques, is at www.cirpllc.com.
- END - Page 2 of 2