04/25/2014 11:47 am ET Updated Dec 06, 2017

Amazon A Presence in Streaming Video, But Not Music (Yet)

Amazon Customers Use Free and Paid Music From Other Sources

Consumer Intelligence Research Partners (CIRP) released analysis of media services from Amazon, Inc. This analysis indicates that Amazon Prime customers rent or buy video from Amazon at high rates, more significantly more streaming video from Amazon than other customers.

Based on CIRP survey data, we estimate that Amazon Prime customers buy or rent video from 1.9 times per month, almost 5 times more often than non-Prime members (0.4 times per month), and almost double the overall average of 1.0 times per month.

Beyond taking advantage of the library of free streaming video, Amazon Prime members are the best customers for Amazon's pay streaming video rental and sales. 70% of Amazon Prime members buy or rent streaming video from Amazon, compared to 42% of non-Prime members (see chart). 19% of Prime members pay for streaming video from Amazon at least once a week, compared to 4% of non-Prime members that buy or rent streaming video from Amazon at least once a week.

Frequency of Buy or Rent Streaming Video

Amazon Prime members buy or rent streaming video much more often when compared to other Amazon customers. Amazon Prime members also use the free streaming video service extensively, downloading an average of 5.5 free videos per month. And, almost 60% also pay for a Netflix subscription.

CIRP also analyzed Amazon customers' streaming music habits, though Amazon is currently a tangential player in that space with the Amazon MP3 Store. Amazon Prime members also use free or paid streaming music services much more than other Amazon buyers (see chart).

How Often Amazon Customers Use Other Free or Streaming Music, by Prime Status

Of course, everyone uses free music much more than they pay for streaming music, like commercial-free Pandora One. Yet, Amazon Prime members are over twice as likely to pay for streaming music services as other Amazon customers. We think that these customers would definitely value the addition of a streaming music service to the Amazon Prime member benefits and that it would help them justify the annual expenditure.

CIRP bases its findings on a survey of 500 US subjects, from April 1-6, 2014, that made a purchase at Amazon in January - March 2014 period.

For additional information, please contact CIRP.