http://www.cnbc.com/id/102765573
Amazon’s doing THIS in battle with Netflix, Apple
Amazon will "double down" on its investment in original programs for its
video-streaming service, its European head of video told CNBC, amid fierce
competition from the likes of Netflix.
E-commerce giant Amazon has released a number of its own television series on
its online-streaming service, Prime Instant Video, and even wontwo Golden Globe
awards for its program "Transparent."
Given the success, Jay Marine, vice president of Amazon Instant Video in
Europe, told CNBC the company would invest more in new shows to remain
competitive.
"We're going to continue to double down in that area, invest more to bring our
customers worldwide, more originals, more great TV series that they have never
been able to see before," the executive told CNBC at the launch of this year's
London Technology Week.
"The reality is there's lots of places to get videos, it's a very competitive
market, we need to provide something different," he added.
Amazon invested $1.3 billion in Prime Instant Video in 2014, according to the
company's CEO Jeff Bezos and has produced a number of original programs. Woody
Allen earlier this year signed a deal to write a six-episode television show
for Amazon, showing that big Hollywood names see the appeal of streaming
services.
However, Amazon's offering has stiff competition from the likes of Netflix and
possibly even Apple when it launches its rumored streaming service.
Plus, Amazon is still behind Netflix when it comes to user numbers. Its rival
had 60.4 million users globally in the first quarter of this year compared to
Amazon's 13.6 million, according to research from IHS.
Amazon offers its video service as part of a $99 per year subscription to
Prime, which allows users to watch its streaming service and listen to music,
among other features.
In comparison, Netflix costs $8.99 a month.
Marine said that bundling the video service with Prime membership has been key
so far in attracting users.
"People see the value. You get free one-day shipping and you get this video
service and people will be paying that amount in a year anyway. People are
smart," Marine said.
