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mhhf1ve
4/18/2016 3:01:35 PM
User Rank Platinum
Netflix and Amazon have some advantages...
Netflix and Amazon have been collecting viewer preferences for a long time now. Netflix has been gathering just movie/show-watching habits for years, but Amazon has a data trove of all the books and purchasing history of its users. So both of these companies can try to anticipate what original content will be profitable... whereas Apple and Google have a bit less data on their users. Apple only knows what its users have bought from iTunes before. Google might have search history data, but that's not as reliable as purchase data. Google does have Youtube viewing data, too, so Google has a bit more info on what people like to binge watch online.
jbtombes
4/18/2016 3:18:29 PM
User Rank Platinum
new OTT user profile
Could a new market segment be emerging? The OTT video consumer who watches a few months of one service, then goes to another and does the same. Maybe call them binge churners? The cost of switching is zero, in any case.
Ariella
4/18/2016 3:20:40 PM
User Rank Author
Re: Netflix and Amazon have some advantages...
<Netflix and Amazon have been collecting viewer preferences for a long time now. Netflix has been gathering just movie/show-watching habits for years, but Amazon has a data trove of all the books and purchasing history of its users. > Not to mention the video purchases and dowloads from Amazon and Amazon Prime service. So yes, @mhhf1ve it definitely has a lot to work with in anticipating customer tastes.
Netflix earnings
I've just glanced at the Netflix first quarter earnings, but here's a story. I think there will be one on Light Reading tonight.
afwriter
4/18/2016 11:01:18 PM
User Rank Platinum
Amazon Has a Long Way to Go
I have both Prime and Netflix, and I rarely use Prime for two reasons; first of all, they just don't have as much content that I like. Second, and more important, their user interface is a pain in the butt to navigate which instantly turns me off from trying to find something to watch. If they really want this service to succeed by itself they are going to need to do a massive overhaul and add some more content. That being said, I beleive that their original programming rivals Netflix's on many levels.
JohnBarnes
4/19/2016 7:02:22 AM
User Rank Platinum
Re: new OTT user profile
I think you are on to something there, @jbtombes. The "when I want it" component of consumer choice really didn't, probably couldn' t, anticipate how many people would rather watch a series a season at a time, taking a couple of weeks at most per season (and thus pretty much completely defeating the original purpose of continuing-story TV's wipeout of the old freestanding-episode version). It makes absolute total sense from a binge-watcher standpoint to simply hop from service to service so as to watch all the seasons of everything they like over the course of a year. In fact, if content they want is spread across more than one service, that's what makes the most sense.
"Binge churners" might also be called "consumers that aren't being bullied around anymore" or "market conditions advantage takers" of course.
JohnBarnes
4/19/2016 7:06:02 AM
User Rank Platinum
Re: Amazon Has a Long Way to Go
@afwriter, I'm mildly fascinated and perhaps a bit horrified that you rank the interface above the content in formulating your choice. It sounds like saying, "Well, I like certain authors, but more importantly, I want books printed in Baskerville Old Face with wide margins."
JohnBarnes
4/19/2016 7:15:06 AM
User Rank Platinum
Market ratchet
Just to make sure we mention the obvious (which is part of what we do around here!): consumer-desired changes that are added on as luxuries and perqs from one competitor quickly become mandatory for all. This is another step on the path to fully a la carte on demand, pay-as-you-go content. They won't be able to take this step back later, and everyone else will have to take it soon.
The endpoint is obvious; how we all get there is an interesting question and fortunes may depend on it, but in the longer view of economic history, in 20 years, questions about the exact mechanics of what goes into streaming/download packages are going to be about as relevant as the old questions about whether key-lock self-starters, heaters, radios, and automatic transmissions were going to be standard or add-ons are to car buyers now.
vnewman
4/19/2016 8:48:51 AM
User Rank Platinum
Re: Amazon Has a Long Way to Go
@afwriter. My reasoning is much worse. I'm a long-time prime member and I just plain forget about their video service. I couldn't even tell you where it is on the site. I feel like a teenager gently letting down a romantic interest: "I just don't think of you in that way, Amazon."
elizabethv
4/19/2016 9:01:03 AM
User Rank Platinum
Amazon has game
I actually see Amazon as being really successful in taking this route. And I'm a little excited. Granted, there's a "I hate big businesses/corporations" part of me that despises this tactic. But there's also a love for Amazon that I have (and their undeniably low prices) that absolutely loves Amazon. And if you have to play the capitalism game, Amazon comes to the table fully loaded. I've had prime for years now, and regularly watch content on Amazon video. There have been very few instances where Netflix had something that Amazon didn't (outside the obvious Netflix original content.) Head to head, they will almost solely compete on an original content level, and I've enjoyed both for their own merit. Catastrophe is a great series on Amazon, and my kids enjoy Tumbleleaf. To wit, House of Cards is a great series on Netflix, and my kids enjoy DinoTrux (okay, I enjoy DinoTrux too.) I know both will inevitbaly vie for the title of best, but I'd assert they both stand on their own and are equally pretty dang good. I'll fork out $20 a month to have access to both. (yeah, I already do.....)
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