The Current State Of Amazon Prime Video

Amazon Prime Video

Do your eyes lit whenever you look for another film to watch or TV series to binge on? If so, you’ll most likely love Amazon’s Prime Video, which is included in your Amazon Prime membership. 

Prime Video is a video streaming service available for Amazon Prime subscribers. With an Amazon Prime membership, you’ll come across a huge number of Prime Video titles at no extra cost.

Members can also rent or buy films and TV episodes with Prime Video seamlessly. Prime Video has over 100 premium channels. Let’s look at why Amazon Prime Video is the number two player in the U.S. subscription streaming world.

Amazon CEO Jeff Bezos declared that Amazon Prime (with Prime Video) bags over 150 million subscribers worldwide (from 100 million the year before). Its subscriber numbers are worlds apart from number three player Hulu (around 30 million), and the newcomers such as Disney and Apple

As an entire company, Amazon recorded a $232 billion income in 2018 — the video channels’ discount business is small potatoes. Amazon doesn’t offer a “skinny bundle” of streaming TV channels. However, its individual Prime Video Channels service is growing financially. 

As shown by new estimates from BMO Capital Markets, Amazon’s Prime Video Channels pulled in $1.7 billion of revenue in 2019. This is more than twofold from 2018, which is $700 million. That number is prepped to grow to $3.6 billion in 2020 as Amazon becomes an even larger conglomerate.

Amazon Prime Video’s Current Business Model

Amazon Prime Video offers unlimited streaming TV episodes and films for members in the U.S. They have likewise kept alternatives to add video memberships to Starz, Showtime, AMC, A&E, and many other streaming entertainment channels. 

Here are the plans of action associated with Amazon Prime Video:

Platform: A multi-sided operation providing video content (studios, channels, Amazon original, and so on) and unique content

Exclusives: Exclusive content and afterward serves with the aim of alluring members to sign up for their overall Prime bundle

Retail: Sales/lease of motion pictures/TV episodes that are not available as a major feature of Prime Video 

Premium Network Subscriptions: Subscription to singular channels/networks

Partnership: The mix of the Fire TV segments into TV manufacturer’s hardware to increase a larger installed base

Stimulation of Consumption: Making it simpler to use Prime Video by in-built Alexa voice control, adding more clients to their virtual assistant platform too

Pay-Per-Use: Use of the streaming and other web content conveyance infrastructure (Amazon CloudFront) 

Bundling: Bundling of Prime Video into the general Prime membership (which at that point has a few branches itself) 

Source: Amazon Prime video business model

Amazon Prime Video Membership Worldwide

As of 2018, Amazon Prime Video has the second position in the growing video-on-demand industry. Amazon has over 150 Million Prime Video users worldwide as of January 2020.

It has around 75 million videos worldwide, which incorporate around 40 million in the US. This is expected to stretch to around 100 million Prime Videos by 2020.

Source: Statista and Market. us

In March 2020, research directed in the United States uncovered that 36 percent of 18 to 29-year-olds had bought Amazon Prime Video. It also showed 11 percent shared a password to an account. 

Amazon Prime Video was mainstream among those matured somewhere between 45 and 54 years, with 46 percent saying that they have a present membership as of the survey.

Here is the chart of grown-ups with an Amazon Prime Video membership in the United States as of March 2020, by age group.

Source: Statista

Before the end of 2018, the quantity of Amazon Video subscribers in the United States remained 50.23 million. It was 44.99 million from the previous year. 

Further, Amazon envisions to grow in Prime Video’s subscribers base, with projections showing that Prime Video could have over 61 million U.S. subscribers by 2024. Here is the number of Amazon Video subscribers in the United States from 2017 to 2020 and the presumption till 2024 (in millions).

Source: Statista

Amazon Prime Video Content

Amazon has been formulating its Prime Video library. You can say that it’s rivaling Netflix as far as third-party content. The films or TV shows you can get through Prime Video are exclusives that you cannot get elsewhere.

Although the number and quality of Prime Video originals are still lingering behind Netflix’s offerings, Amazon still has the quality and even award-winning content.

Some of these are Transparent, Electric Dreams, Bosch, The Man in the High Castle, The Hand of God, and The Grand Tour.

As a plus, Amazon Prime Video has the earmarks of being the home of a set of produced content. In case you’re searching for web shorts and off-the-wall documentaries, Prime Video possesses many of these.

You can likewise notice a lot of cult favorites and old-school B-films in Prime Video. And those are welcome augmentations to any streaming service.

As stated previously, Amazon is following the original content strategy similar to that of Netflix and Hulu. It’s likewise augmenting its library with self-produced films and TV shows. 

Like Netflix, Amazon is producing more selective content in the future.

Amazon Prime Video is also available in different platforms. It is available in iOS, Android, tablet, and streaming box applications (Roku, Apple TV, and its own Fire TV).

Prime Video is also compatible with Blu-ray players, game consoles, and Smart TVs. 

Like Netflix, you can also enjoy Amazon Prime Video content on an internet browser. 

Amazon Prime Video Competitors and Rivals 

The streaming video space is getting swarmed. Its chief competitions are the established streaming services like Netflix and Hulu, who have their own market share.

Newcomers to the on-demand streaming industry, such as Disney and Apple, are rivaling all three companies with original content and booming subscriber numbers.

Many investors see services like Disney+ as removing subscribers from Netflix. Amazon Prime Video is in a more grounded position than Netflix and other existing contenders.

Amazon views its large subscriber base as a competitive advantage as recent streaming services come to market. Former Amazon Studios strategist Matthew Ball brought up the topic in an interview with Recode’s Peter Kafka


Here are the reasons Amazon is very well-positioned to withstand the expected rivalry. 

1. Channels 

Amazon Channels is a significant market share for Amazon, confirmed to earn $1.7 billion in net income in 2018. Analysts expected that number should grow to $3.6 billion by 2019, and that is exactly what happened. 

Channels offer a simple way for Prime members to buy into extra streaming services. It puts Prime content from Cinemax, HBO, Showtime, Starz, and many other services.

This strengthens Prime Video content since consumers view it in the same place as the rest of their streaming content. Thus, it inserts Amazon in the streaming ecosystem, making it difficult to leave. 

This business model is why others, including Apple, have made moves as of late to emulate Amazon’s Channels model. Apple is offering Apple TV Channels and will incorporate its own content (similar to HBO) this fall.

To sell other streaming services isn’t just rewarding. It expands the unmistakable quality and estimation of the distributor’s streaming service.

2. Presence

Amazon has an extraordinary measure of the essence of the vast majority’s homes. Not only are many individuals getting bundles from Amazon, yet 34 million consumers have a Fire TV device attached to (or implanted in) their TVs. 

The platform consumers stream video is a gigantic favorable position for Amazon. It can advertise its latest film or series to purchasers each time they turn on their gadgets.

The user experience for spilling Prime Video content might be better than streaming from unique services on a Fire TV. It’s because of the daily integration of consumer behavior.

It’ll be hard for Fire TV clients to dump Prime Video for other streaming services. Amazon continues making Fire TV gadgets, allowing it to grow its essence on the TV screen. Its widening lead in the streaming stage business shows the technique is working. 

3. Cost 

Consumers who just want Prime Video can pay Amazon $8.99 every month for the service. That is more affordable than Netflix‘s most popular plan, which costs $12.99 every month. It’s also cheaper than Hulu’s ad-free service, which costs $11.99 every month. 

The expense of Prime Video for the more significant part of its viewers is viewed as free. It can also be just another convenient addition to Amazon Prime’s already stellar service. Amazon Prime only costs subscribers $119 for a yearly subscription.

While just a few Prime members watch Prime Video, individuals who do get an outsized incentive from their Prime memberships.

Amazon is attempting to expand the choice of video by producing high-quality, big-budget Lord of the Rings series. As Amazon continues to invest in expensive but top tier content, the “free” Prime Video may turn into a significant staple in many shoppers’ video lineup. 

Impossible to Leave

Amazon has built up a streaming service ingrained in individuals’ spending plans, brains, and propensities. This makes it inconceivable for many customers to select the unsubscribe button. 

Amazon will continue to keep growing its content list with quality originals. It will also increment its essence in consumers’ homes, and lock consumers in by selling auxiliary services. It’s a serious position they will keep on reinforcing despite the increased rivalry. 

  • Amazon Membership Price

Amazon Prime Membership

The most financially savvy approach to access videos on Amazon Prime is by becoming an Amazon Prime member. It incorporates Amazon Prime Video with an Amazon Prime membership.

In case you’re not a Prime member but might want to be, you can begin with a free 30-day trial. You can opt for this before choosing whether to go ahead with your subscription.

Memberships cost $12.99 every month or $119 every year if you pay every year (you save $36.88). EBT or Medicaid cardholders are qualified to get Amazon Prime advantages at a discounted rate of $5.99 month to month for as long as four years. 

Are you not keen on buying an Amazon Prime subscription and just need Prime Video access? If so, you can become a member for $8.99 per month, or $107.88 per year. The price though isn’t far from the $119 yearly Amazon Prime membership. That accompanies a heap of extra advantages. 

To turn into a Prime Video member, first-time Amazon users can get to the Amazon Prime membership data page. Then explore to “See more plans” and select “Prime Video” on the list of choices for Amazon Prime plans. 

Source: Amazon Prime Video Plans

On the off chance that you prefer not to pay for any membership, just log in to your Amazon account. You can then pay for your buy or rental. After you’ve finished your order, they will prepare your choice to see in your video library. 

  •  Short-term and Long-term Strategies

Comparing Amazon Prime Video to other streaming services is quite difficult. Because of their unique (and enormous) business model, Amazon is an altogether different streaming player than its competitors. Disney+, Netflix, and Apple TV+ expect consumers to sign up for singular month-to-month memberships. 

Amazon, then again, gives Amazon Prime Video for free to its Prime members who pay $119 yearly with free shipping expectations. Considering everything, who doesn’t love free shipping? Whether or not customers know it, it’s one more “goodie” to keep them in the Amazon ecosystem. 

The overall Amazon Prime membership is the company’s competitive advantage. It’s also a prime differentiator from Netflix. But, is Amazon going after Netflix?

Amazon Prime Video turns out to be one more marketing line for this Seattle behemoth. That now penetrates each part of our lives both on the web and increasingly offline (Whole Foods is one remarkable model). 

Disney and Apple likewise drive multi-faceted plans of action. Streaming (Videos and TV Series) can be viewed as a disguise to bait consumers into their ecosystems.

Even those behemoths can’t contend with Amazon’s reams of information, the entirety of our shopping propensities, and various preferences. 

Information is power, and Amazon’s precise knowledge of how we go through our cash is data of the most elevated order. Our review propensities inform Amazon how best to advance our shopping experiences and amplify the surge of our dollars into its coffers. 

Final Thoughts

Amazon is glad to stay the course amidst the choppy waters of the streaming wars. It faces less strain to trumpet itself since Amazon plays by its own principles. Prime shopping and membership numbers are what niche? 

Amazon reports no different from Amazon Prime Video subscriber numbers. All other streaming services are under obligation to disclose subscriber counts and viewership numbers.

They will likely continue to boost Prime membership numbers throughout 2020. This is to make their own decisions about their relative accomplishment, even with this hyper-rivalry.

In the interim, team Bezos can sit back and enjoy the “streaming wars” strain from the sidelines. Amazon will be sure to utilize its unfathomable amount of consumer data to lead them to create amazing content. But this may be at a slower pace.

Who knows, they may pick up a struggling movie theater or two to expand its 360-degree on the online/offline coordination into our everyday lives. 

The eCommerce giant shares expect, on average, 70% of the membership charges. Amazon paid out $1.2 billion out of 2018 to Prime Video Channels partners. The firm’s analyst expected expansion to $2.5 billion out of 2020. Prime Video Channels could turn into an open door for Amazon to generate incremental revenue. 

Amazon Prime Video won’t burn through $17 billion on content like Netflix will this year. And that’s their strength.

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