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Survey: Amazon Prime Instant Video Slowly Gaining on Netflix

2 Nov, 2012 By: Erik Gruenwedel

Connected Blu-ray Disc players second to iPad as the preferred device to stream video content

More people, percentage wise, watched Amazon Prime Instant Video than Netflix in September, according to a new study.

While Netflix again dominated the subscription video-on-demand market with 82% market share in the September survey of 1,115 respondents in North America, that percentage was 2% less than in a similar conducted in February by ChangeWave Research.

The Bethesda, Md.-based research firm found that 22% of respondents watched online video content via Amazon Prime Instant Video compared to 17% in February. Two percent more (8% vs. 6%) watched Hulu Plus while 16% opted for transactional video-on-demand via iTunes compared to 15% in February.

Netflix, Hulu Plus and Amazon Prime are all subscription-based streaming platforms.

Indeed, among the four previous surveys dating back to December 2010, Netflix’s SVOD market share has fallen 9% while Amazon’s has risen 15%. In addition, 17% of respondents said they were more likely to cancel Netflix after it lost exclusive access to Epix movies, including Twilight Saga, The Hunger Games, The Avengers and Thor when they available in the premium TV window.

Compounding matters, 18% of Netflix subscribers say they now also pay for Amazon Prime Instant Video – up 4% since the previous survey.

Interestingly, iTunes had the highest (“very satisfied”) rating among respondents with 35% arroval, while Netflix trailed with 23%, Amazon (22%) and Hulu Plus (20%).

Of course, iTunes has access to new release studio moves on street date while SVOD services don’t.

The iPad (32%; up 7-pts) is the top Internet-connected device among respondents who own a gadget that allows them to stream video content.  Moreover, it’s showing the greatest growth of any Internet-connected device, according to the survey.

Blu-ray Players (31%; down 2-pts) are the second most used device, followed by iPhones (25%; up 5-pts) and video game consoles (24%; down 1-pt), while Apple TV (13%; up 4-pts) and Roku (13%; up 4-pts) have both seen increases since the February survey.

“While Netflix still holds the largest share by far of the paid alternative TV market, consumers continue to shift towards Amazon’s [Prime] Instant Video service,” said Andy Golub of ChangeWave. “As Amazon’s TV and movie content becomes more competitive with Netflix, its popularity is surging among consumers.”

About the Author: Erik Gruenwedel

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