One of the big industry news stories this week was the introduction of Amazon’s Prime Instant Video service, which offers more than 5,000 streaming titles at no extra charge to paying Amazon Prime customers. According to a survey by research firm The Diffusion Group, Netflix may stand to lose some subscribers to Amazon over the latter’s new service.
According to the survey, 87.5% of Netflix customers who use that company’s streaming service also shop at Amazon.com, and 18% of those respondents are also Prime subscribers. Now for the telling statistic: 36% of existing Prime subscribers surveyed said they would cancel their Netflix subscriptions in favor of Amazon’s service. 33% said they would keep their subscriptions to both Netflix and Amazon Prime.
It is important to note that the survey was conducted before Amazon’s announcement. Nonetheless, if reality at all reflects these numbers, Netflix might need to worry about Amazon’s new offering poaching some customers.
What do you think, Insiders? Is Amazon’s Prime Instant Video service the first real potential rival to Netflix in this sector?