Amazon Gains on Netflix in Alternative TV Market

Souce:451 Research Publish By Updated 03/11/2012 5:50 pm in Media Release / no comments


BETHESDA, MD – November 2, 2012 – A new survey from 451 Research’s ChangeWave service shows that while Netflix leads among paid alternative TV providers, the Amazon Instant Video service is making big gains among consumers.

“While Netflix still holds the largest share by far of the paid alternative TV market, consumers continue to shift towards Amazon’s Instant Video service,” said Andy Golub of 451 Research’s ChangeWave service. “As Amazon’s TV and movie content becomes more competitive with Netflix, its popularity is surging among consumers.”

The September survey of 1,115 North American consumers also looked at the leading Internet-connected devices people are now using to stream video.

Competition Among Paid Alternative TV Providers

Despite declining since the previous survey in February, Netflix (82%; down 2-pts) continues to hold the lead among respondents who pay for online video. But Amazon Instant Video (22%) has surged 5-pts and increased its share over iTunes (16%) and Hulu Plus (8%).



Here’s a comparison of Netflix users vs. Amazon Instant Video users over the past four ChangeWave surveys:



EPIX, the popular online movie distribution channel that used to be available exclusively to Netflix subscribers, recently became available on Amazon Instant Video – and 17% of Netflix subscribers say this makes them More Likely to cancel their Netflix subscription.

EPIX movies were once available for streaming exclusively on Netflix, but now they are also available on Amazon Instant Video – including movies from Lionsgate, MGM and Paramount (e.g., The Hunger Games, The Avengers, Thor). Does this development make you more likely to cancel your Netflix subscription, less likely, or does it have no effect?



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



Customer Satisfaction With Paid Providers. iTunes still has the highest Very Satisfied rating among paid alternative TV providers (35%), with Netflix (23%), Amazon (22%) and Hulu Plus (20%) bunched together in the second tier.



Leading Internet-Connected Devices for Streaming Video

The iPad (32%; up 7-pts) is now the number one 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.

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 previous survey.

Which of the following Internet-connected devices do you use to stream Internet video content? (Check All That Apply)



Note that Apple now manufacturers three of the top seven Internet-connected devices – iPad, iPhone and Apple TV – providing the company major penetration into this growing market.



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