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Amazon Prime Video in 45% of U.S. Internet Households

Amazon
(Image credit: Amazon)

DALLAS—New data from Parks Associates' Video Services Dashboard reveals that as of Q3 2021, Amazon Prime Video's subscriber penetration rate was at 45% of US internet households. 

Parks released the data as Amazon and other streamers continue to raise fees. 

Amazon announced in February that the annual fee for Prime Video would increase from $119 to $139 and on April 6 increased prices for its music service. 

"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. "Amazon also debuted its `Lord of the Rings' trailer during the Super Bowl this year, so the firm obviously hopes the value they are bringing in content will offset any consumer reluctance to pay higher prices. 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

(Image credit: Parks Associates)

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. 

The researchers also noted that Amazon Prime Video is one of the four foundations of the consumer streaming stack, along with Netflix, Disney+, and Hulu. 

Amazon Prime Video is one of several benefits of an Amazon membership, but Amazon, like its competitors in the OTT space, is investing in original content offerings to keep its subscribers engaged, to encourage new subscribers, and to lure in cord cutters and service hoppers, the researchers noted. 

Many OTT services aired Super Bowl ads this year, promoting not just one title but the range of their content library, to remind viewers of the total value of each subscription.

"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."

George Winslow is the senior content producer for TV Tech. He has written about the television, media and technology industries for nearly 30 years for such publications as Broadcasting & Cable, Multichannel News and TV Tech. Over the years, he has edited a number of magazines, including Multichannel News International and World Screen, and moderated panels at such major industry events as NAB and MIP TV. He has published two books and dozens of encyclopedia articles on such subjects as the media, New York City history and economics.