Following is information and insight from IHS Markit about our new report, Amazon’s Video Ecosystem Extends Worldwide.
- In 2017, there were an estimated 44 million active subscribers to Amazon Prime Video, with a little more than 30 million from the United States and 11 million from the next three leading country markets, Germany, Japan and the UK. IHS Markit forecasts these active Prime Video subscription users to grow to 78 million by 2021.
- The Amazon Prime service bundled with video is now available in 16 countries worldwide. These bundled Prime Video subscription users make up almost 99 percent of the total Prime Video subscription user base, as international standalone Prime Video struggles to gain similar traction.
- The components of the bundled Prime offering are not consistent across countries, with details of both Prime and Prime Video modules differing significantly by country.
- Although unable to triumph over Netflix, the king of subscription video globally, Amazon Prime Video boasts a higher subscriber count in a few select markets, owing to the perceived value of the bundled Prime ecosystem.
Although predominantly an e-commerce company, Amazon is making full use of its video services to spread its brand name across the world, push its Amazon Prime product in localized markets and draw people into the Amazon ecosystem.
A number of high-value acquisitions have contributed to the development of the Amazon Prime package and others indicate where Amazon may take its business next. Using the value of the Prime bundle, Amazon Prime Video subscription users have already managed to surpass Netflix subscribers in Germany, India and Japan.
Amazon’s Prime Video services have grown far beyond a typical TV and movie library and now include features such as à la carte video subscriptions, live sports and user-generated content. This breadth of offering enables Amazon to tap into markets and customers that global rival Netflix has yet to reach.
Amazon’s Video Ecosystem Extends Worldwide
This report covers the valuation of Prime Video within the bundled Amazon Prime package. It includes analysis of high profile Amazon acquisitions, discussion of Amazon Prime Video's success over Netflix in select markets and Amazon's differentiating video aspects.
MEDIA, PLEASE NOTE: The following IHS Markit analysts are scheduled to attend NATPE Miami, January 16-18. Click their links below, if you’d like to schedule a meeting at the conference:
Maria Rua Aguete – Media, Service Providers & Platforms
Jonathan Broughton – Programming and Home Entertainment
Fateha Begum – Television Media and Connected Consumers