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Amazon Set For Net-Net Dominance

Photo Credit: Cindy Ord/Getty Images

Amazon Set For Net-Net Dominance

Originally posted at MediaPost

by J. Max Robins

It’s only a matter of time before Amazon Prime’s video service seriously challenges Netflix’s dominance of the streaming game. The service that Jeff Bezos’ “Everything Store” launched in its current incarnation a scant five years ago is now suddenly poised for primacy.
Amazon Prime grew 35% last year and now has an estimated 54 million subscribers, almost 10 million more than its archrival Netflix, according to a recent study from Consumer Intelligence Research Partners. I know: Subscribers are one thing, and viewers are another. (Sorta like the comparison between polls and votes this caucus season.) But the CIRP survey estimated that about 40% of Amazon Prime members, who pay a yearly $99 for free two-day shipping and assorted discounts, are using the streaming service that comes with the package.

Granted, it’s no secret that despite a spate of acclaimed originals, such as “Transparent,” “Mozart in the Jungle” and my latest binge-ing obsession, “Man in the High Castle,” Amazon still lags way behind Neflix, the home of “House of Cards,” “Orange Is the New Black” and “Making a Murderer.” But a smart money bet is that the gap closes fast.

Look at the landscape of recent Amazon Prime moves. Just this week, it struck a programming pact with Mattel’s “American Girls” behemoth doll franchise, starting with four live-action specials exclusive to the streaming service. Think of the sales and marketing strategies, given the reach and mail-order dominance of Amazon. The deal will also bolster Amazon Prime’s kids video business, a key component to the company's blueprint for continued streaming success.

Read the full article on MediaPost