Amazingly, users that have signed up to Amazon Prime are using Netflix more than Amazon's own Prime Instant Video service, a new survey has found.
An Amazon Prime subscription entitles subscribers to free two-day shipping, but also allows them to access the Prime Instant streaming service, Amazon's answer to Netflix.
But strangely, these subscribers are forking out extra money and spending more time watching Netflix, than Amazon's own service.
63% of the 5,000 Amazon Prime subscribers surveyed said they used Netflix in the previous month, compared to only 59% who say they used Prime Instant Video.
The company that did the polling, Strategy Analytics, says that most people in the U.S. are signing up to Amazon Prime for the free shipping - the inclusion of streaming video, for most of them, is not important. For new customers, the low interest in signing up to Amazon Prime, compared to Netflix, can also be down to pricing, even though Amazon Prime is $19 cheaper than Netflix.
The problem, Strategy Analytics says, is that Amazon Prime subscriptions are annual subscriptions, compared to the month-by-month payment plan for Netflix. And while many view Netflix to be better value (thanks largely in part to original programming), even if it's not cheaper, Strategy Analytics says that Amazon's annual contracts are turning users away.
"Amazon is needlessly 'losing' users to Netflix when, in fact, it should be eating into their user base," said Leika Kawasaki, a digital media analyst with Strategy Analytics. "Amazon Prime offers subscribers multiple benefits, there are more Amazon-capable devices and the subscription is slightly cheaper. Yes, Prime Instant Video has been lagging behind Netflix in original programming, but it’s been making significant moves to address this recently."