Amazon has been an SVOD aggregator for over three years and looks to have been very successful. So, are consumers tired of managing multiple services and happy to let Amazon do it for them? No, Amazon has fixed discoverability.
To learn more about this and other subscription issues join me for a free webinar today, Wednesday, August 28th at 3 PM in the UK and at 11 AM Pacific, 2 PM Eastern in the US. I’ll be joined by Mark Bishop of Vindicia for the discussion.
Is SVOD aggregation working?
With its Channels program, Amazon was the first company to begin reselling SVOD services. We haven’t heard much about how successful the Channels has been since its launch. However, nScreenMedia data suggests it is doing very well.
We asked Amazon Prime Video users in the US and UK if they had purchased add-on video services from the e-tail giant. One-third in the UK and US said that they had done this. Amazon says it has 100 million Prime Members in the US, and three-quarters of those use Prime Video. In other words, at least 25 million have signed up for an add-on video service in the US.
Why are consumers using Amazon to aggregate their video services? Some speculate that consumers are suffering from SVOD fatigue and are frustrated with managing so many services. The complexity issue is an opportunity for aggregators like Amazon to offer a much simpler, more palatable approach. Is this true?
Can consumers manage multiple services
We asked SVOD users in the UK and US if they found it difficult to manage their SVOD services. In the same survey, US SVOD users said they had, on average, 3.4 services and UK users had 2.9. In other words, they had to search through multiple services to find something to watch, juggle numerous bills, and manage 3 or more apps on their connected devices.
Did consumers feel overwhelmed? They did not. 76% of US respondents and 72% in the UK said it was very easy to manage all their online video subscriptions. What’s more, only 2% in the US and 3% in the UK indicated any difficulty at all in managing their services.
Why Amazon Channels works so well
So, why are so many Amazon Prime Video members signing up for add-on services rather than subscribing directly to them? Amazon helps connect people to services they didn’t know existed. Search on a movie that’s available in an SVOD service the company resells, and you’ll receive a sign-up offer to the service. When you enter Amazon Prime Video, there is at least one carousel devoted to services you might like but need to subscribe to get.
Moreover, when you see a service you might like, you can subscribe with one-click. Amazon isn’t solving a complexity issue; it is addressing the SVOD discovery problem.
Join me today, Wednesday, for the free webinar Subscriptions and Cancellations: Video Streaming Habits of US Subscribers to explore subscription issues more. It starts at 3 PM in the UK and at 11 AM Pacific, 2PM Eastern in the US.
Why it matters
Consumers are using SVOD aggregation services like Amazon Channels.
Many believe Amazon Channels and other aggregators solve the complexity problem of managing many services.
However, consumers say they are comfortable managing multiple services.
Amazon solves the discovery problem, and that is why people use it.