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The Genius of Amazon Streaming Video

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Amazon Customers With Free Prime, Netflix Also Buy More Streaming Video

Consumer Intelligence Research Partners (CIRP) today released analysis of streaming video services from Amazon, Inc. (NASDAQ:AMZN). This analysis indicates that Amazon customers that use free Prime streaming video, Netflix subscriptions, or both, rent or buy more significantly more streaming video from Amazon than other customers.

CIRP surveyed US customers of Amazon.com from the three-month period ending November 15, 2013. Based on the survey data, we estimate that on average Amazon customers buy or rent streaming video from Amazon.com 1.1 times per month.

Beyond taking advantage of the library of free streaming video, Amazon Prime members pay for Amazon streaming video in addition to their free Prime streaming video. 77% of Amazon Prime members buy or rent streaming video from Amazon, compared to 44% of non-Prime members (see chart). 18% of Prime members pay for streaming video from Amazon at least once a week, compared to 3% of non-Prime members that buy or rent streaming video from Amazon at least once a week.

Frequency of Buy or Rent Streaming Video
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Amazon Prime members buy or rent streaming video much more often, 2.2 times per month, compared to 0.4 times per month for non-members. Once accustomed to searching for streaming video at Amazon, those Amazon Prime free streaming video customers become the best and likely most profitable customers for Amazon's paid streaming video business. These Amazon Prime free streaming video customers turn out to be Netflix subscribers in large numbers, too.

60% of Amazon customers also have a Netflix subscription (see chart).

Netflix Subscriptions of Amazon Customers

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Netflix has a positive impact on frequency of paid Amazon streaming video use, as well. For both Amazon Prime members and non-members, use of video, both free and paid streaming, is higher for Amazon customers that also have a Netflix subscription. Based on the survey data, we estimate that Amazon customers that are also Netflix members buy or rent Amazon streaming video 1.4 times per month. In contrast, Amazon customers that are not Netflix members buy or rent Amazon streaming video 0.8 times per month.

CIRP based these findings on its survey of 300 subjects who made a purchase at Amazon.com in the three-month period ending November 15, 2013.

For additional information, please contact CIRP.