Posts for 'Amazon'

Welcome to 2013! If you were mostly checked out over the past 1-2 weeks (or were only paying attention to the fiscal cliff roller coaster), you didn't miss a whole lot in the video world. However, there were 5 items that caught my attention which I briefly describe below:

See the 5 items

Research firm GfK released data from its third annual Over-the-Top TV report late last week, finding, among other things, that consumption by Netflix subscribers age 13-54 is roughly 2,000 minutes per month, about the same as it found in its '11 study. That amount is in the same general ballpark as the 2,388 minutes/sub/mo that BTIG analyst Rich Greenfield calculated for June, 2012, and in line with the 2,000 minutes/sub/mo that I calculated during Q4 '11.

The survey of 1,051 persons age 13-54 and conducted in June, 2012, found the average Netflix subscriber watches 5.1 TV shows and 3.4 movies per week. The survey revealed that 39% of this age group are Netflix subscribers (up from 35% in '11), with 47% having ever been a Netflix subscriber.

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After a week off for R&R, I'm pleased to be joined once again by Colin Dixon, senior partner at The Diffusion Group, for the 146th edition of the VideoNuze-TDG Report podcast. Colin is at the IBC conference in Amsterdam this week, so his audio isn't quite as good as usual. There, he attended a fascinating presentation by a Unilever executive on how the company is adapting its advertising to the realities of a multi-screen world. Colin shares his reactions, particularly to how Unilever is creating its own online content in order to engage its audience in ways not possible with traditional TV advertising.

Shifting gears, we then discuss Amazon's aggressive content licensing blitz that I wrote about earlier this week. Having spent hundreds of millions of dollars licensing premium content over the past 15 months in support of its Prime Instant Videos, I think it's pretty clear that Amazon has emerged as the strongest new competitor to Netflix. Colin agrees, but reminds us that although content parity is critical to competitiveness, user experience matter as well. On this front, we agree Amazon still has a lot of work to do to match Netflix. Listen in to learn more!


Click here to listen to the podcast (23 minutes, 41 seconds)
 

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Back in February, 2011, when Amazon unveiled Prime Instant Video, I noted that the service's Achilles heel was its minimal content selection. And since the video service was embedded in the larger Prime free shipping offer - rather than getting its own standalone brand - I sensed  hesitancy that Amazon would spend big bucks to license lots of premium-quality video. That indeed seemed to be the case as Amazon didn't announce a single content licensing deal to support Prime Instant Video until July, 2011.

However, since then, things have changed markedly; Amazon has been on a content licensing blitz over the last 15 months, announcing at least 14 different deals, culminating in today's with EPIX (see below for links to all). Despite the slow start, Amazon's huge content investment shows the company is quite serious about achieving content parity, or better, with its closest rival, Netflix, while leaving others like Google, Apple, Wal-Mart/VUDU, Verizon/Redbox and others playing catch-up in user-friendly subscription OTT services. Including the EPIX content, Amazon says it now has 25,000 titles/episodes, up 5-fold from its February, 2011 launch.

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Amazon has been offering its customers the opportunity to upload video product reviews for years, but peruse the site and you'll see that text reviews still dominate, with only a scattering of videos. No doubt recognizing how powerful video has become, it looks like Amazon may be putting a new emphasis on video product reviews. In an email I received yesterday from the company (which millions of other Amazon customers are likely receiving as well), the subject line read "Review your recent purchases at Amazon.com," with a large callout:

"New on Amazon! Grab your video camera or webcam and add video to your customer review. Click on "Review this product" above to upload a video or find a different product to review"

To be accurate, video reviews aren't a new feature on Amazon, though clearly they haven't been used much; for the 3 products I had bought, all had a healthy number of text reviews, but none had any video.

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