Amazon Prime Video Tops Netflix in Germany5 Jul, 2016 By: Erik Gruenwedel
Netflix may be global, but in Germany it’s runner up to Amazon Prime Video for consumers watching streaming video, according to new data from research firm Goldmedia. Thirty-two percent of 2,058 respondents in an April survey who watch on-demand content said they prefer Prime Video, compared with 17% who like Netflix.
Another 12% prefer Sky On-Demand; 11% favor maxdome; 10%, Google Play; 8%, iTunes; 3%, Videoload and Watchever. Among all Internet users, 22% favor Prime Video, compared with 11%, 8% and 7% for Netflix, Sky, maxdome and Google Play, respectively.
Goldmedia found that 43% of all German online households, 24 million pay for on-demand video — double the number of VOD consumers from 2014. VOD revenue was about €423 million ($468 million) in 2015, and is expected to reach €990 million ($1 billion) by 2021.
The research firm cited Netflix’s arrival in 2014 and slightly earlier debut of Prime Video helping to jumpstart the German VOD market and establish the services as top SVOD platforms. Indeed, Prime’s free shipping on e-commerce transactions helps attract a wider consumer base, which Prime Video has benefited from.
Despite Netflix and Amazon’s apparent dominance, Goldmedia believes true leadership in a market with 38 VOD/SVOD options remains to be seen — especially with the expected launches of DisneyLife and YouTube Red.
While transactional VOD and electronic sellthrough continue to grow due to their elevated status on the distribution food chain (compared to SVOD) for new-release movies and current TV shows, SVOD is growing faster due to its price appeal among younger consumers, i.e. Millennials.
Goldmedia contends winners in the market will be driven by price, access to new and original content, curated material and multiple media device functionality.
“Even greater growth is conceivable if and when telecom operators introduce data plans targeting SVOD and transactional VOD consumers,” read the report.