Amazon Prime in 50% of U.S. Households by Year's End10 Aug, 2017 By: Erik Gruenwedel
About half of all households in the United States will have access to Amazon Prime (and Amazon Prime Video, Prime Music, Prime Now, Prime Pantry) by the end of the year, according to Cowen & Co. analyst John Blackledge.
Citing a monthly survey of 2,500 online respondents, Blackledge said the e-commerce behemoth’s membership shipping service topped 49% of U.S. households in July. The analyst suggests there were 54 million Prime subs at the end of July — up from 46 million during the previous-year period. There were 125 million domestic households at the end of 2016.
Amazon, per policy, does not disclose Prime sub numbers.
“Prime has maintained healthy growth despite its scale," Blackledge said in a note. The analyst contends Prime continues to be a “critical” driver to Amazon’s retail business. Amazon Web Services (AWS) is the company’s largest revenue growth driver.
But with the company signing up record new subscribers during the recent Prime Day, coupled with back-to-school shopping and year-end winter holiday shopping, household subs should exceed 62.5 million.
Netflix ended its most recent fiscal period with more than 50 million subs.