Amazon, the largest internet-based retailer in the world, might want to enter the European internet service provider industry. They aim to do this by bundling internet access with Prime Video, their video streaming service. From Amazon’s perspective, this step makes sense because it is believed they are currently planning to introduce Prime Video in various European countries, next to entering the European internet service provider industry. Next to that, it looks like they want to compete with cable companies who provide both internet service and media streaming. Amazon recently bought the rights to broadcast a number of series in the Netherlands.
Amazon currently has seven separate retail websites for Europe, including the UK and the Netherlands. Bundling their video streaming service with internet access is a logical step, as the products work together and it offers the opportunity to introduce the products simultaneously in the European countries. Offering internet service to European customers fits their overall product portfolio, and increases the Amazon ecology.
As the media streaming industry is getting more and more competitive, price will be an increasingly important factor. Currently, depending on location, the price of a Netflix subscription can be about twice the price of a Prime Video subscription. This may contribute to a possible reduction of the Netflix market share. An important factor in attracting customers is the production of ‘Original’ series, series only available on the platform that owns the series. The Grand Tour, the coming successor of the widely popular Top Gear, is an example of an Amazon Original series which will undoubtedly attract former Top Gear enthusiasts.
We can expect to see greater European presence from Amazon in the future, entering the media streaming and internet industry simultaneously. Offering internet service will be an addition to the Amazon ecology, making the platform more complete for their customers. In an increasingly competitive media streaming market, product differentiation by offering ‘Original’ series will be very important.
Sources:
http://www.nu.nl/internet/4328976/amazon-brengt-filmstreamingdienst-binnenkort-nederland.html
http://www.rtlz.nl/tech/amazon-wil-in-europa-internetprovider-worden
