Amazon Prime Channels Leads for Direct-to-Consumer Sales: TDG
Amazon has created a successful storefront with Amazon Prime Channels, and a report from the researchers at The Diffusion Group (TDG) shows just how successful. HBO, Showtime, and Starz all offer direct-to-consumer online subscriptions for their premium movie services, and all three get the bulk of their subscribers through Amazon Prime Channels.
For HBO, 53 percent of DTC sales are through Amazon Prime Channels, for Showtime it's 72 percent, and for Starz it's 70 percent. Subscribers no doubt like the convenience of being able to add extra services to their Amazon Prime Video subscriptions and pay for them all through one bill.
While Amazon currently has a lock on video service aggregation, that won't last long. As TDG notes, Apple has announced it will debut a similar offering in its TV app that offers a la carte premium video service selections. Viewers will be able to subscribe through the app whether they're using it on an Apple TV, iPhone, or iPad.
"And Apple would have a key advantage over Amazon Channels: it would not require a $120 per year membership before one can aggregate a la carte purchases through its TV app," notes Michael Greeson, president of TDG.
This data comes form TDG's report "The Future of Direct-to-Consumer Video Services—Analysis and Forecasts, 2018-2022," available for purchase.
Amazon Prime Video may have a lot of members, but they didn't come for the online originals: 79 percent signed up for free shipping.
Prime subscribers around the world will be able to tune in for 11 games per season, with Amazon reportedly paying $65 million each year.
Viewers opened their wallets to skinny bundles and SVOD services last year, and there's more where that came from.
Over the next few years, the leading SVODs will shift budgets from licensed content to originals, all to keep viewers tuning in.