With Amazon aggressively boosting the content offering of its Prime Instant Video service, many are wondering if the online retail giant plans to relaunch the service as a stand-alone streaming competitor to Netflix, etc. Not so, says Amazon.
Amazon’s Prime Instant Video service is a free add-on to its popular Prime subscription, which costs annually and offers unlimited two-day shipping on most products sold on the site.
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Brad Beale, Head of Digital Video Content Acquisition at Amazon, doesn’t see a separation of the streaming portion of Amazon Prime from the shipping side of things anytime soon. Said Beale:
“The bundle of benefits that come with Amazon Prime make perfect sense to offer to customers . . . The way that Prime Instant Video is offered today — we’re going to continue that approach at least into the near future.”
Is this a wise move, Insiders, or a missed opportunity? Do you think that Amazon still sees its streaming offering as a sweetener to entice customers to buy more from the site?
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[via GigaOm]
Do you think that Amazon still sees its streaming offering as a sweetener to entice customers to buy more from the site?
Absolutely! Amazon could run its streaming service as nothing more than a loss leader and to utilize all its excess bandwidth.
‘Loss leader’….I think everything is a loss leader at amazon right now. They are going from profits to losses to sustain top line growth. We’ll see how long they can keep that up.