Amazon uses Prime Video in an effort to overthrow Netflix from its leading position
The online retailer has allowed its Prime video members access to its video service for overthrowing Netflix
For many years, Amazon has continued to burnish its Hollywood credentials, by famous shows like “Mozart in the Jungle” and "Transparent", as a part of its effort to unseat the US internet media streaming service provider, Netflix, as the ruler of TV streaming industry.
Now the American E-commerce company is taking another courageous measure to threaten the media company. On April 17, 2016, the online retailer sold off Prime Video – an incentive offered to its yearly Prime members – as its stand-alone facility. Amazon has for a long time offered its yearly Prime membership for a subscription of $99, which includes offering two days shipping free of charge as well as full access to movies, TV and music offerings.
According to the new plan, consumers will be provided with access to the video facility for $8.99 per month (or $10.99 per month for every Prime service).
The measure does not only benefit consumers seeking the higher flexibility a month-to-month plan offers. It also positions the Seattle based organization in a more aggressive manner in the much occupied video streaming market. The organization has continued to work hard to boost its reputation as a destination for high quality entertainment, not only an online shopping platform.
Investors welcomed the news. Shares of Amazon closed on April 18, 2016 at $635.35, up 1.5% or $9.46.Other analysts have cautioned, nevertheless, that company faces a difficult task because of the deeper ties of Netflix with the entertainment sector. The organization that for a long period has been viewed as a runner-up to the California-based organization, which has over 81 million subscribers across the world.
In recent times, nevertheless, the web retailer has turned heads with many well-known TV and film agreements. In January at the Sundance Film Festival, the online trading platform operator arose as an aggressive purchaser of independent movies.
Its Woody Allen movie "Cafe Society," will begin the Cannes Film Festival. The video facility of Amazon presents noticeable programs, such as children shows from the Nickelodeon television network, "Downtown Abbey," and previous seasons of HBO series like "The Sopranos."
The online trading company also provides films from the premium television network Epix. During an earnings conference with investors, CEO of Netflix Reed Hastings did not directly address the venture of the company but gave acknowledgement to the growing rivalry in the video streaming industry.
In the meantime, Netflix recorded sales revenue of $1.96 billion for the first 3 months, a little less than the sum of $1.97 billion expected by analysts. Net income rose by 17% to 6 cents per share or $28 million, well more than 3 cents per share that was forecasted by analysts.
In the US, the streaming service provider grew its subscribers by 2.23 million; also well over the 3 cents figure forecasted by analysts. Nonetheless, Netflix’s growth was lower than the 2.28 million subscribers that it achieved 12 months earlier.
Apart from battling with the media organization, Jeff Bezos’ organization provides the video facility due to other motivations. Amazon finally wants a larger number of users to log up for its Prime.
