Study: 40% Of Amazon Subscribers Watch Streaming Video Only On Netflix

Amazon boasts thousands of free streaming titles through Prime Instant Video, but U.S. Amazon subscribers apparently prefer watching video on Netflix. Intelligence research firm Strategy Analytics found 40% of Amazon Prime subscribers in the U.S. are more likely to only use Netflix for video streaming purposes.

Strategy surveyed 5,000 internet users between the ages of 18-74 from the U.S., UK, Germany, and France. The research firm found that out of all U.S. Prime subscribers, 63% of them used Netflix in the month preceding the survey, compared to only 59% who used Instant Video. Additionally, Strategy noted only 44% of American Prime subscribers use Instant Video at least once a week. This is in contrast to 55% of German Prime users and 54% of UK users who access Instant Video on a weekly basis.

Amazon’s Instant Video offerings are also not enticing enough to Americans to convince them to sign up for Prime. Strategy Analytics discovered 55% of Americans are more likely to subscribe to Amazon Prime for its free two-day shipping than for Instant video. On the other hand, German and UK residents are more likely to join Prime for the Instant Video feature (46% and 41%, respectively).

“Amazon is needlessly ‘losing’ users to Netflix when, in fact, it should be eating into their user base,” said Leika Kawasaki, Strategy Analytics’ digital media analyst, in a release. “Amazon Prime offers subscribers multiple benefits, there are more Amazon-capable devices, and the subscription is slightly cheaper. Yes, Prime Instant Video has been lagging behind Netflix in original programming but it’s been making significant moves to address this recently.”

Kawasaki isn’t wrong. Over the last few months, Amazon has been acquiring content and announcing or renewing plenty of original programming. And some of the streaming platform’s current titles have received widespread critical and consumer praise.Transparent in particular garnered Amazon its first-ever Golden Globe win, proving the streaming service is ready to take on Netflix’s caliber of programming.

Kawasaki believes Amazon could attract more subscribers eager to use its streaming video by promoting its products, since owners of devices like the Fire TV are 10% more likely to use Instant Video on a regular basis. We’ll have to see if Amazon Prime subscribers in the U.S. start checking out Instant Video more often once the platform rounds out its slate of original titles. (Of course, Amazon could always try to hook more subscribers by offering free viewings for a day, like it recently did for Transparent.)