Prime Video: will it add value?

4

October

2016

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Amazon will probably soon launch their video streaming service in the Netherlands. Thanks to this current television channels in the Netherlands have difficulties with acquiring and broadcasting good films and series, because Amazon is buying the licenses for these films and series. Other video streaming services in the Netherlands like Netflix thinks that the upcoming competition of Amazon is a good thing. The CEO of Netflix Reed Hastings says: ‘’When the competition is good the whole market will grow, also thanks to this we will have a lot of media attention and people will go from traditional television stations to streaming services’’.

The video streaming service will be called Prime Video. When you buy a subscription for Prime Video you also get free e-books, music and free shipment of physical goods bought at Amazon. So Amazon will also use Prime Video to become more popular in the Netherlands for buying goods on the internet. They add this streaming service in Netherlands to their value proposition. So they use an online technology to become more valuable for customers and try to be more attractive for  customers than Bol.com, Ebay or Coolblue for example.

Off course the question is if Prime Video will be a success in the Netherlands. If people will not take a subscription on Prime Video, they will for sure also not buy more at the Amazon store. And with the competition of Netflix in the video streaming industry and Spotify in the music streaming industry is will be hard for Amazon to become an important player in these industries in the Netherlands. They do not have the first mover advantage and they maybe will be too late to play an important role.

We will see how the story in the Netherlands continues!

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