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Amazon Airs Prime Instant Video TV Ad

2 Jan, 2014 By: Erik Gruenwedel

Amazon has in recent weeks quietly upped the profile of its subscription streaming service, Prime Instant Video — now with a TV ad.

The ecommerce behemoth is airing an ad on IFC highlighting the benefits of Prime’s two-day shipping on most purchases, in addition to Kindle tablet connectivity, and streaming access to more than 40,000 movies and TV shows.

The two-minute spot coincides with a Dec. 26 announcement that more than a million people became Prime members during the third week of December, a record number of sign-ups for the $79-a-year membership program.

Amazon, which continues to be purposely vague about the number of Prime subscribers and their SVOD usage rates (compared to Netflix and Hulu Plus), has not been shy about spending money securing high-profile rights to third-party content, including exclusive access to hit PBS series “Downton Abbey,” CBS’ “Under the Dome,” Nickelodeon content, and original programming such as “Alpha House,” among others. 

The spot would appear to signal a new page in Amazon’s marketing of Prime Instant Video, a strategy that increasingly targets Netflix, according to BTIG Research analyst Richard Greenfield, who first noticed the TV spot.

Greenfield believes Amazon Prime has thus far had a negligible impact on Netflix, despite the fact its CEO Reed Hastings often cites Prime as a potential 800-pound gorilla in the SVOD market.

“That appears to be changing,” Greenfield wrote in a Jan. 2 post.


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