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Prime Video penetration in the US hits 45%

April 8, 2022 10.23 Europe/London By Julian Clover

The penetration of Amazon Prime Video among US internet households stands at 45%, according to Parks Associates’ Video Services Dashboard.

Parks’ update comes in the wake of Amazon Prime’s recent price rate increase, one of a number in the sector.

“Amazon’s Prime pricing rise, the fourth in its history, comes barely a month after Netflix raised its fees, while Hulu raised its prices last year,” said Eric Sorensen, Senior Contributing Analyst, Parks Associates. “With inflation and the cost of content on the rise, we will likely see more providers start to slowly raise their subscription prices, trying to find that balance between revenue growth and consumer value.”

Parks Associates estimates that in the first quarter of 2021, 77.3 million US households were members of Amazon Prime and that around 71% of them watched Prime Video.

In the United States, Prime Video is seen as one of the “four foundations” of consumer streaming, alongside Netflix, Disney+, and Hulu. It’s one of a number of benefits to Amazon Prime also including premium audio and, naturally, fast delivery.

“These price increases by Amazon have been fully vetted out as part of their long-term strategy to generate more revenue from subscribers over time,” Sorensen said. “Supply chain and increasing shipping expenses are being passed down to customers, but it is doubtful that Prime members will object to a twenty-dollar-a-year membership rise, the first in four years.”

Parks Associates updates its OTT Video Market Tracker on a monthly basis.

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Filed Under: Editor's Choice, Newsline, Platforms, Streaming, Top Story, TV Tagged With: Parks Associates, Prime Video Edited: 11 April 2022 12:35

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About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on Twitter @julianclover, on Facebook or by email at jclover@broadbandtvnews.com.

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