Media

Amazon vs. Netflix in the Paid Alternative TV Wars

Source: thinkstock
New research from 451 Research’s ChangeWave service shows that the Instant Video offering from Amazon.com Inc. (NASDAQ: AMZN) continues to gain share among consumers. Netflix Inc. (NASDAQ: NFLX) still dominates the market for “alternative TV” with 82% share, but that’s down 2 points from the previous ChangeWave survey in February 2012. iTunes from Apple Inc. (NASDAQ: AAPL) holds a 16% share and Hulu Plus gets 8%. Amazon Instant Video nabs 22% of the market, up 5 points from the February survey.

ChangeWave notes that Netflix’s loss of its exclusive rights to online movie distribution channel EPIX (to Amazon) led 17% of Netflix subscribers to say the loss is ‘more likely’ to make them cancel their subscriptions to Netflix.

Making matters worse for Netflix, 18% of subscribers already pay for Amazon Instant Video, up from 14% in February. Amazon trails Netflix by a single point in customer satisfaction, 23% to 22%, but both trail Apple which boasts a 35% ‘very satisfied’ rating.

The top choice for a device on which to watch streaming video is the iPad, up 7% to 32% since February. Blu-ray players are the choice of 31% (down 2 points) and iPhones are the choice of 25% (up 5%). Internet-connected video game consoles are used by 24% (down 1%), while Apple TV and Roku TV get 13% each, both up 4%. Google TV and various Android-powered devices from Google Inc. (NASDAQ: GOOG) didn’t make the cut.

The battle for control of consumers’ living rooms, not just their TV sets, is just getting started in earnest. Apple has a clear lead in hardware, but the don’t count out network TV and cable channels. They own most of the content and can drive a pretty hard bargain. It’s still early days.

Paul Ausick

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.