By Sahil Patel
If you watched enough TV over the holidays, you might have come across an ad for Amazon Prime, which in pretty straightforward terms tells you what the subscription service is. If you didn’t, not to worry, Rich Greenfield at BTIG Research did, and was cool enough to record it for you:
The ad itself is unremarkable, but does a pretty good job of introducing Amazon Prime’s video service to consumers who might have not known it exists. Generally, Amazon Prime’s video offering has been seen as an add-on to those who just want the perks of free, two-day shipping. Here it’s given a bit more air-time as a video service that may be worth your time.
There’s a point in the spot which Greenfield says is an “attack” on Netflix. I don’t know if I agree with that. The comment (“Who needs to subscribe to another video service…”) seems pretty standard for any type of ad in any competitive industry. But nevertheless, here Amazon is, talking openly about all of the movies and TV shows it has to offer, and even manages to throw in a quick shot of one of its originals, “Alpha House.” It joins Netflix, which also released a TV spot during the holiday season.
Does it mean, as Greenfield notes, that Amazon is gearing up to market Amazon Prime even more, and in doing so, take on Netflix directly? Maybe. Very likely if it just spent money on a two-minute commercial explaining what the subscription product is.
Should Netflix be worried? No. Not yet. A recent report from Sandvine indicated that Netflix accounts for close to one-third of downstream internet traffic during peak hours. Amazon Prime? Less than 2%.