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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?

(via GigaOM)

13 Responses to “Survey: Netflix May Lose Customers to Amazon”

  1. Visitor [Join Now]
    Jon Klemin [visitor]

    I’m a prime subscriber and was really excited about their announcement the other day. Then I checked out their selection… It’s terrible.

    Of course, it will get better with time, but they’re probably a year or two away before the selection catches up to Netflix.

  2. Member [Join Now]
    mkiker2089

    The survey is kind of odd in the way it provides the numbers. 18 percent of the 87.5 precent are prime customers. of that 18 percent only 36 percent would cancel. Really it breaks down to Netflix losing 5.7 percent give or take. Not nearly the hyperbole the story would suggest. That’s even assuming people are accurate in the survey and doesn’t factor in that Prime has less videos, no queue system, and less devices to watch videos on.

    So say you have 100 Netflix customers
    875 use amazon is some way
    158 are prime customers
    57 will use prime instead of netflix

  3. Visitor [Join Now]
    John [visitor]

    Nope! Dont think so.

    I have Netflix like millions of others and while I would like to see more offerings and more of their titles offered for streaming, they have a large market share and they wont be going away anytime soon. AND, they wont be losing 30% market share as suggested here.

    I agree with the first poster here in that Im an amazon customer ( not prime) and happy to hear they are offering this service but I didnt like the initial selection either. I dont plan on joining until they offer more ( like HBO or REDBOX). I have items on my VOD wish list and they were still for sale but not offered in the streaming price. IMO, they need to do more if they want more subscribers. I would be willing to add them to Netflix once they get there.

  4. Member [Join Now]
    clucka

    Been with netflix since 2004, and would never leave netflix for amazon prime

  5. Visitor [Join Now]
    Arnold [visitor]

    You can rent DVDs from Netflix, not from Amazon. For me, streaming is extra (so Amazon would not really be offering me anything).

  6. Member [Join Now]
    jgantert

    Would love to try out Amazon streaming, unfortunately my Tivo does not support it! Argh!

  7. Visitor [Join Now]
    Trevor [visitor]

    We currently have a free Prime membership, so we can’t use the streaming, but if it were available to me, I’d only use it for stuff I can’t get from Netflix. After a quick look at the selection, it appears that there really wouldn’t be any reason to use it at all.

    And faced with a choice between Prime and Netflix, unless you’re really mostly joining Prime for the shipping and plan to buy a lot of stuff, Netflix is the way to go. It is slightly more expensive in the long run, but is paid monthly rather than yearly, and has a much larger selection (not to mention actual DVDs).

  8. Visitor [Join Now]
    Greenmet29 [visitor]

    I have netflix and would definitely change to amazon if they’re selection grows. At this point its not near big enough, but at 79.00, it’s cheaper than netflix AND you get free 2-day shipping, something that I don’t subscribe to but have seriously considered anyway, on top of that.

  9. Visitor [Join Now]
    Rhonda [visitor]

    If Amazon.com were to add in DVD rentals and widen their selection, I just might be tempted to jump ship. However, I’m sticking with NetFlix and RedBox for the time being. I like that I can get new releases cheaper and faster with RedBox and I like that I can stream while having three DVD’s at home with Netflix.

    I would certainly use the free 2-day shipping, but it’s not worth bailing ship…yet.

  10. Visitor [Join Now]
    Jo Anne [visitor]

    I, too, checked out Amazon Prime but was very disappointed in the measly titles offered. Now, I DO check for Amazon streaming bargains, like getting The Town for $1.99. My biggest problem with Netflix is not always getting the new releases, and getting throttled by them once in a while. (Oh, wait, they don’t throttle customers. That would be wrong.)

    I can’t afford both services, but can treat myself once in a while to a new release from Amazon when Netflix doesn’t come through. I don’t mind paying for a streaming service when it means I don’t have to go pick up the movie or, even better, go out to return it.

  11. Visitor [Join Now]
    Lou Vincent [visitor]

    You better off going with Redbox since you can get the movie you want immediately instead of waiting. That’s the very reason I put Netfix down along with Block Buster. Way to go Red Box.