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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.
 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.
 Mike Robuck
4/18/2016 6:41:46 PM User Rank Author
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.
 faryl
4/29/2016 11:13:41 PM User Rank Platinum
Re: Netflix and Amazon have some advantages...
Amazon also has the advantage of deep pockets and an increasingly diverse amount of product offerings/markets it's involved in.
 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.
 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. faryl
4/29/2016 11:17:35 PM User Rank Platinum
Re: new OTT user profile
Good point - especially since Amazon's been gaining recognition for the Amazon-only content it's producing. I could see people paying for a month of service to watch the full seasons of particular shows and then potentially cancelling when a different series starts elsewhere.
(Though Prime as an overall service is pretty handy in general - I forget that video is even one of the benefits sometimes!)  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 7:06:02 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."
afwriter
4/19/2016 9:44:35 AM User Rank Platinum
Re: Amazon Has a Long Way to Go
It's more like: I like certain authors and Netflix uses the Dewey Decimal System while Amazon is just a giant pile of books on the ground.
Mike Robuck
4/19/2016 10:51:34 AM User Rank Author
Re: Amazon Has a Long Way to Go
I agree about the Amazon interface being clunky, although it has gotten a bit better since we first started using it. We used to use a Kindle to search, select, etc., which made it a bit easier. So far HBO Go seems to be smoother and faster.
Ariella
4/19/2016 7:28:23 PM User Rank Author
Re: Amazon Has a Long Way to Go
@afwriter that bad, huh? Maybe there's method to the madness, rather like the research library in NYC that catalogued books according to the way they were shelved, which often was set by size more than by subject.
 elizabethv
4/21/2016 6:06:25 AM User Rank Platinum
Re: Amazon Has a Long Way to Go
While I definitely enjoy the analogy, I don't really find this to be the case. I'm not sure when the last time you tried using Prime Video was, but to me, their interfaces are relatively similar. The top includes a list of movies/tv shows I might be interested in watching based on my previous selections - followed by various sub-categories. You of course always have the option of searching for different content specifically. They even allow you to only look at the content available for free through Prime, which I prefer. Because it is really annoying when I decide I want to watch something, only to later realize I would have to pay to rent it even though I have Prime. Even this problem they've solved by including a banner on the titles that are included with Prime. Without a doubt, some content will appeal to some consumers over others, which is the same with an interface. (I personally have no idea how anyone uses an Apple product.) But I find Prime to be just as good as Netflix. (I'm actually watching a movie on Prime right now.)
 DHagar
4/21/2016 1:49:07 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@elizabethv - You are right on their video services. I think they are great here and are probably going to become a leader, which they should. And they have really built excellent Prime services.
My specific examples were dealing with just their general online purchasing - in response to earlier comments - that they are not as simple. If they were to simplify some of their searches on products - to the high level of service in video, etc., they would be unbeatable. They are definitely excellent at what they pursue. And they deserve to win now in this new effort in taking on Netflix. I am cheering for them!  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 9:10:37 AM User Rank Platinum
Re: Amazon Has a Long Way to Go
@vnewman - there are actually a few ways to access Amazon video from the main page. And if you're already paying for Amazon prime, you might as well look into accessing the video content. They have a large variety and a lot of really good movies/TV shows you won't pay anything more to enjoy whenever suits your needs. Plus, one aspect that I really enjoy is the ability to actually download what you want to watch, so that you can watch it another time without streaming/using data. This is really helpful when you don't have access to reliable WiFi. (Read - my kids watch kids TV shows while we're shopping to make my life easier.)
vnewman
4/20/2016 12:48:13 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
Hi elizabethv - I see what you're saying, but feel it gets lost in the clutter of what they display on the home page. Right now I see links, i.e. ads for Amazon Fashion, Amazon Fresh, Amazon Prime Fresh and here is one I've never seen before: Amazon Unlimited Photo Storage!
Sometimes I feel like Amazon ought to embrace the Costco method of selling: Costco purposely limits the selections they offer knowing people get overwhelmed by having too many choices - it essentially shuts their brain down and they walk out with nothing. DHagar
4/20/2016 1:43:11 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@vnewman, I have to agree with you on this point. I think the one primary complaint I would have about Amazon is they do not have as effective search/display (ie - simplicity) as I believe they could and should. You have everything, but you either know what you want or have to wade through a lot of choices you don't want to make your final selection. They would walk away with the market, in my opinion, if they were to address this. (Note: Costco is a great example)
DHagar
4/20/2016 7:30:03 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
Hi, Batye, you said it! Now that you mention it, not only is it not simple but the search engines are not that intelligent. You can search for a title, or a product, and it will throw in everything but the kitchen sink. I think they should offer a Premium "Intelligent" service as part of Prime, and truly give you a better match for what you are looking for.
Good products, great prices and service, but not so good on the match/search, making things not so simple.  mpouraryan
4/20/2016 7:59:50 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
It is interesting @Dhagar that you note that they're not that intelligent. No question they are basically a "catalogue", but there is some intelligence built in. I can't say how many times I have mistyped and yet I still got the information I was looking for. Google is the king--but Bing is not too shabby either.
DHagar
4/20/2016 8:17:33 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mpouraryan, understand I shop at Amazon as well. So what I am meaning on the "Intelligent" search engine is that they do not "refine" the searches to as close a match as others. I fully agree though, and have done the same thing, their "associations" with the search are very good - so they give you lots of choices. If they further build their capabilities not to associate everything and then refine the selections - keeping it simple - they will have it all!
Thanks for the good point! mpouraryan
4/20/2016 8:24:25 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
As you and I have discussed, the sense of balance is key because as AI becomes more mainstream, we are acquiring the ability to be able to be more "simple" at the same time. It will be fascinating to watch--no question.
DHagar
4/20/2016 8:39:25 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mpouraryan, good points - as always!
Yes, and they are clearly moving forward into the services with the video, so I have no doubt they will continue to develop good services. I think I am just a little surprised that they haven't conquered the simplicity factor. If they do, they will be unbeatable! mpouraryan
4/21/2016 2:04:40 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
AmazonFire TV is on that path. As long as one is comfortable with the APP world, it should not present a problem--This is as I am seeing reports (as underscored by what Comcast has done with how they're moving away from Cable Boxes to an "App-drive" model) which may well negate what the FCC is trying to do to change the way Cable Boxes are regulated.
DHagar
4/21/2016 2:16:06 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mpouraryan, thanks for great info. Really interesting - it sounds like it might be the right path. If so, they will surely be a leader!
mpouraryan
4/21/2016 9:34:36 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
I suppose, in retrospective, it is about how one takes advantage of the technology. One has to know what one expects--I view it as the essence of embracing transformation. Buying a gadget for the sake of buying it is not necessarily the right path.
DHagar
4/22/2016 12:45:13 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mpouraryan, very true. Technology will not solve everything and we need to use the tools appropriately.
Clearly, Amazon has unleashed so many positive applications, and they continue to develop new frontiers. Pretty impressive overall! mpouraryan
4/22/2016 12:51:07 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
I won't find it presumption to advise Jeff Bezos--however we all have been witness to Blackberry, Digital, Sun and all the luminaries that have been relegated to footprints in the revolution (note I said Revolution...not transformation) and all have to tread lightly.
DHagar
4/22/2016 12:55:39 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mpouraryan, great points. And your distinction between revolution and transformation is an excellent one!
 dcawrey
4/25/2016 12:31:43 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
I'm a little bit confused here. I already am a Prime member, so what's the value-add for Amazon to sell standalone video service? Based on this chart, for $99 I get free shipping and a bunch of other features including Prime video. Why would anyone want to pay per month just for video?
vnewman
4/25/2016 12:37:12 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@dcawrey - You read my mind just now. What person in their right mind would pay $8.99 for video alone but not the extra $1 for, at the very least, free shipping? Are there people out there who don't buy anything at all from amazon, ever and only see it as a video streaming service? Really?
elizabethv
4/26/2016 8:08:20 AM User Rank Platinum
Re: Amazon Has a Long Way to Go
@vnewman you actually end up paying more to just stream than you do for all of the benefits of Prime. So it definitely seems crazy why anyone would choose to just stream when you can get free shipping on items at the same time, for less money. But realistically, I've made similar decisions when a large, one time payment was just completely out of reach for me financially, and a relatively small, month-to-month payment made more sense. Granted I don't make this decision where Prime is concerned, but I can still see why someone would go that route.
DHagar
4/25/2016 1:19:42 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@dcawrey, I am with you on that. But as I see it, it plays to the person who doesn't want to pay or have access to that service for the entire year, so they just may value buying the service for targeted purchases (ie Christmas, etc.). It may be playing to the "unbundling" offerings that customers value.
freehe
4/26/2016 8:37:46 PM User Rank Platinum
Amazon
Competition is good but Amazon is just starting out. Netflix customers are loyal and aren't going to switch anytime soon. It will take a few years for Amazon to develop good original content as well as movies that customers want to see. Their catalog is subpar right now. Netflix has nothing to worry about for now but they better keep developing new betters or they will how a low quarter like Apple just did.
DHagar
4/26/2016 9:25:47 PM User Rank Platinum
Re: Amazon
@freehe, exactly, I fully agree.
If Netflix keeps its competitive edge and delivers the quality content, they will have the ability to stay in the lead. Amazon can create new tiers and delivery levels - which they are good at - but if Netflix adapts and continues to have a better content/mix, the customers will stay with them. Note: They may have to look at some new options for pricing in the long run if the pricing models change and customers begin to move away from the current models. mpouraryan
4/28/2016 11:14:08 PM User Rank Platinum
Re: Amazon
I have just been catching on Amazon's Results and all I could muster is: wow!! They can afford to be bold--Netflix should be afraid...really afraid!!!
JohnBarnes
4/22/2016 8:00:30 AM User Rank Platinum
Re: Amazon Has a Long Way to Go
@DHagar, @mpouraryan, another example of the Reverse Turing process in action. When I'm having trouble locating something on Google, I often ask myself "What search terms would a scatterbrained person of limited vocabulary formulate?" and enter them without any logical terms (no and, or, but, or not and no exact text symbols). Not only does what I am looking for often show up in the first 25 or so returned results; it often shows up in the first 5.
We are gradually producing people who are able to be dumb enough to imitate machines. Marketers and politicians everywhere may rejoice. mpouraryan
4/22/2016 11:38:45 AM User Rank Platinum
Re: Amazon Has a Long Way to Go
Ever so true--our challenge is to somehow retain our humanity. Whether that in fact is possible is another question. They are all doing the thinking for us and frankly that should scare us all.
DHagar
4/22/2016 12:50:16 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mouraryan, regarding the humanity - absolutely. That's why we need to keep thinking - the race is on, but if we keep thinking we will win.
mpouraryan
4/22/2016 12:56:00 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
If we believe Kurzweil, though, it seems as if machines will take over us all--and we have to do our part to avoid it at all costs.
Food thought on this Earth Day as I wish all Happy Earth Day and a great weekend :))
DHagar
4/22/2016 12:59:23 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mpouraryan, we won't let that happen - we will think and band together!
Yeah for Earth Day! Thanks - enjoy our natural beauty and have a great weekend as well! mpouraryan
4/22/2016 1:06:34 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
We Shall and Will Overcome..as I hope all embrace this as well I saw while working away @ my network from Scott Kelly as he reminded us all...wishing all a great weekend!!!!
 DHagar
4/22/2016 1:11:20 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@mouraryan, thanks - good stuff!
JohnBarnes
4/23/2016 1:02:05 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@DHagar, I'm not at all sure that "if we keep thinking we win." That has sometimes been true in some past situations; in many others, thought has been beaten by blind reflex, tradition/inertia, and sheer chance. I think it's more that once one has started down The Way of the Thinker, everything else seems like a disgrace. But just as many market contests have been won by inferior products and wars by the side with the poorer generals and the less capable equipment, the contested space between people and machines may well be won by the machines because they don't think -- and therefore don't get bored, don't try something new when something else is already working, and don't decide they want something else in the middle of the process. All of which are parts of what make us human, but not necessarily economically valuable parts at every point in the system.
DHagar
4/25/2016 1:11:49 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@JohnBarnes, great points.
As I see it, today's issues are not a simple either or, in reality it is a hybrid of decisions. Where you need repetitive "expedited processes", machines are definitely superior - I fully agree. But speed, efficiency, production, etc., is now not the only criteria in the new economy - it was in the pure Industrial Revolution. Now we have an economy that not only rewards efficiency, but responds to creative disruptions that change the economy and make the "efficient productions" obsolute (ie Kodak, booksellers, etc.). So there is a new driver in our economy that attracts new capital when the creations are superior and add more value. I think that gives us a more balanced - but disruptive - economy that deals with Moore's Law, etc. I like his book "Dealing with Darwin". That is where I believe the new more highly competitive economies wil reward the economic drivers of both. JohnBarnes
4/25/2016 2:53:32 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@DHagar, yep, definitely a place where we disagree. While I will certainly concede that it is still possible to make money and even sometimes a lot if money by finding and meeting customer needs, I think the real growth area in marketing is in encouraging customer responses to be simpler and more reflexive. -- I.e. dumbed down.
DHagar
4/25/2016 4:08:07 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@JohnBarnes, always appreciate your quality thinking! I don't believe we disagree on the goals. And I am not even sure we disagree or part ways on the process. What I believe is taking place in the present economy is that success (ie simplicity) is achieved through knowledge & aligned processes. I consider that (example of Apple) as requiring great expertise on the part of the provider to offer an elegant (ie simple to use) product. Yes, the thinking is being done for them in that they don't need to know algorithms, data science - as that is built in with the technology design. But the ability to build that design and consistently deliver competitive services requires knowledge on the part of the provider.
I see that as what Amazon is doing and I consider that a transformation in business and new service models. DHagar
4/22/2016 12:47:08 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@John Barnes, well stated! We just need to get "in sync" with the machine processing. Thanks for insights!
Note: On the political front, maybe that is one of the factors contributing to this year's "highly unusual" political campaign. DHagar
4/21/2016 1:51:54 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@batye, see this is where I agree that the "clutter" with the search is not as elegant as they could be - even their advanced search. It can be very time consuming. As mpouraryan pointed out it is a catalogue - and we are used to better information in the digital age.
They are really good, but if they addressed this, they could even be better! mpouraryan
4/20/2016 7:58:30 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
As someone who is a current prime customer, I don't get that at all @bayte. If I need something I have been able to find it--it may not be as easy at first, but it is possible.
vnewman
4/25/2016 12:34:33 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@DHagar - I feel like something in the algorithm has drastically changed since Amazon's early days and the user experience has declined with regard to search results. Last month, I tried to buy some plastic easter eggs for my kiddo using the brand name plus the term "easter eggs." I hit every brand except the one I was looking for. It was very strange. Now, I know some of fault can be placed at the feet of the sellers (when the seller isn't Amazon itself) and they fail to fill out important backend terms like Topic, Category, Search Terms, and Keywords. But even so, that doesn't explain some of the oddities you see when Amazon itself is the seller.
DHagar
4/25/2016 1:28:18 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@vnewman, I have had the same experience. That has been my point about an "intelligence" that is missing with the volume of products now that they are handling.
True that keeping current is a seller's responsibility, but it seems that the Amazon organization has some missing gaps - even though their service is outstanding. But if they were to differentiate between the items they have control of and make those real-time accurate. And set up a channel of distributed sellers (there is already a differentiation in free shipping) where the information is updated less real-time and dependent on the supply chain, that would guide customers in their orders. The reality is that they are successfully handling so many products and sellers that I believe it loses information/control, etc., in the secondary sellers and so getting a specific Brand gets lost in the "overall system". If they would segment this, it would be really helpful to the customers and keep all of their services up to the original designs. The challenges of all successful companies! Ariella
4/20/2016 3:59:11 PM User Rank Author
Re: Amazon Has a Long Way to Go
<Sometimes I feel like Amazon ought to embrace the Costco method of selling: Costco purposely limits the selections they offer knowing people get overwhelmed by having too many choices - it essentially shuts their brain down and they walk out with nothing. >
@vnewman I've never shopped at Costco, though I know many people who do. So that's its secret not to overwhelm the shoppers with its warehouse-like offerings? Very smart! It's true that too many choices overwhelm people. I know that Netflic deliberately limits its recommendations to viewers based on its algorithms. Seeing a hundred movies to choose from in one shot would just make selecting a chore and likely make some people give up. DHagar
4/20/2016 7:25:17 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@Ariella, you got it - you do get lost!
You should try Costco sometime - you will like its value and straight forward shopping. Ariella
4/20/2016 8:20:40 PM User Rank Author
Re: Amazon Has a Long Way to Go
@DHagar two things are keeping me back. One is the membership fee. The second is the fact that shoppers there report waiting on line for over half an hour to check out.
DHagar
4/20/2016 8:36:03 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@Ariella, well you are right on both accounts. They have the simplicity, value, and service down, but the supply/demand does need work!
vnewman
4/25/2016 12:46:31 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
@Ariella, I don't shop there either because I absolutely hate lugging a shopping cart around and dragging stuff out the car when I can just have things delivered to my door instead (Amazon or Soap.com). But there are a lot of people who love it - maybe because they feel they are getting a huge bargain, or perhaps it is a social thing - a way to get out and about and interact with other people in your community. For those folks, Costco is like the promised land. What Costco does, they do very well.
faryl
4/25/2016 7:56:04 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
I agree.
The other thing I don't like about Prime is that it's a mixture of free and paid content.
While that has the benefit of meaning a larger library, I hate when I think something I want to watch is available only to find out I have to buy/rent it. I'd rather use iTunes if I am going to pay for it.
afwriter
4/25/2016 8:23:33 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
That just reminded me of someone who is being left out of this conversation. When it comes to paid content I always use Vudu because it keeps my entire collection in one place. If Walmart started offering a streaming service through Vudu Netflix could actually be in trouble. I doubt that they ever will though given the failure of both blockbuster and redbox streaming.
elizabethv
4/26/2016 7:35:07 AM User Rank Platinum
Re: Amazon Has a Long Way to Go
@faryl You should be able to see a banner across the corner of the content you want to watch if it falls under the category of Prime. I agree, it's pretty annoying when you want to watch something only find it out it isn't Prime. But ever since they added the banner, telling the difference has been significantly easier.
faryl
4/28/2016 11:55:11 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
I just hate when it shows up in a search for content! :-)
At least with netflix or other services, if it's not available, no results show up. Or on iTunes I know free is the exception to the rule. (Or when I'm making my way through a TV series and think the next season is available, then get hit with the payment screen in order to watch it!)  dlr5288
4/26/2016 6:30:16 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
Yes good point, I'm the same way.
I understand why some things are free and why some have to be purchased. It brings in more kinds of costumers, but it's annoying when you'e used to something being free and then realize you have to buy something else in order to watch it. I'd also rather purchase things off of iTunes. mpouraryan
4/28/2016 11:15:05 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
...As I have been assessing the earnings, it seems as if they've got some things up their sleeve with Prime as Mike has reported on what they're doing up their sleeve.
mpouraryan
4/28/2016 11:16:04 PM User Rank Platinum
Re: Amazon Has a Long Way to Go
What they are doing is in essence adopting the "Automatic Customer" concept--it is a standalone business that is estimated at $ 5 Billion Alone..and enticing people to buy more is quite a draw--I hope you agree!!
:))) 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. Ariella
4/19/2016 7:30:37 PM User Rank Author
Re: Market ratchet
@JohnBarnes I'm sure you're right, as that is the way standards escalate as something advances from being viewed as an "extra" to being viewed as integral to the service.
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.....)
 Michelle
4/19/2016 3:14:57 PM User Rank Platinum
Early holiday
I think the new subscription model will help Amazon gain even more holiday shoppers. The flexibility to choose your subscription level and adjust as needed will likely be a welcome option.
All the new a la carte subscriptions are a growing biz these days. I wonder if the distrubuted model really will be better than cable in the end... DHagar
4/19/2016 7:24:01 PM User Rank Platinum
Re: Early holiday
@Michelle, I agree with you that this offers the customer some really nice choices. I believe customers want to be able to select their subscription level. They also want, as you point out, the a la carte customized mix. I do believe it will be preferable to cable in the end - both from content as well as in pricing.
Michelle
4/20/2016 10:34:15 AM User Rank Platinum
Re: Early holiday
@DHagar I know several people who would like the option to use Prime a few months out of the year - mostly for holiday shopping. I assume people are Prime subscribers all the time and quickly learn I'm wrong.
DHagar
4/20/2016 1:39:46 PM User Rank Platinum
Re: Early holiday
@Michelle, yes, they have options for Prime services as well as membership. I believe that these choices are what is keeping them in the lead. And it really makes sense to give the customer those choices with the financial incentives to be subscribers. They are really good at this and they continue to win over customers and hold incredible customer loyalty because of it.
 clrmoney
4/21/2016 11:22:08 AM User Rank Platinum
Amazon great service
Amazon offers a variety of products and services so I'm not surprised out this and I very happy for them.
dlr5288
4/25/2016 7:46:12 PM User Rank Platinum
Amazon vs Netflix
I can definitley see Amazon becoming the next Netflix. I do think, however that it's going to take some time. Netflix is such a huge name and very popular today. I think with the prices and the new things that Amazon is offering they could move forward and take away Netflix costumers.
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