Amazon gains traction in US connected homes

May 4, 2014 16.06 Europe/London By Robert Briel

Amazon has made significant gains in the OTT video market as nearly 20% of all US broadband households now have an Amazon Prime Instant Video subscription, according to Parks Associates.

The Q1 2014 survey of 10,000 US broadband households finds the annual growth rate for Amazon Prime subscription averages over 55% since 2012, compared to a 16% year-over-year growth for Netflix service subscriptions.

“Roughly 50%-60% of U.S. households using connected CE devices subscribe to Netflix, but the percentage of connected CE users subscribing to Netflix did not substantially change between 2012 and 2013,” said Brett Sappington, director, research, Parks Associates.

“By comparison, the percentage of U.S. broadband households with connected CE and an Amazon subscription more than doubled in the same time period, from an average of approximately 13% to 27%. For example, households with a connected streaming media player that also have an Amazon Prime subscription jumped from 22% to 34%.”

Parks Associates research also shows 12% of US broadband households use Hulu Plus.

“Amazon is certainly getting traction in the market—especially when compared against Hulu Plus,” Sappington said.

“Amazon’s growth shows how dynamic the OTT space truly is. While Netflix remains the dominant player, consumers are still open to alternatives with interesting content and business models.”