In 2023, Prime Video overtook Netflix in global subscriber numbers, marking a significant shift in the Over-the-Top (OTT) streaming landscape. This turning point was not a result of chance but of strategic bundling by Amazon, integrating Prime Video with its existing services, especially Prime Shipping.
A Turning Point in Streaming
Amazon’s approach leverages a powerful ecosystem. By bundling Prime Video with Prime Shipping, customers receive entertainment alongside fast, free deliveries. This dual benefit increases the perceived value of the subscription, encouraging users to stay within the Amazon ecosystem. Especially during high-traffic shopping seasons, these bundled services play a crucial role in attracting and retaining users.
Unlike Netflix, which operates as a standalone service, Prime Video benefits from Amazon’s retail power. Netflix’s reliance on subscription fees alone places limitations on how it can incentivize growth. While Netflix still commands significant brand recognition, its lack of bundling with other lifestyle services may explain its slowdown in subscriber growth.
Regionally, this bundling strategy has also proven effective. In Indonesia, for instance, Prime Video partners with telecommunications providers to offer access bundled with mobile data plans. This move increases reach among users who may not otherwise consider subscribing.
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As consumer preferences evolve and cost-effectiveness becomes a key deciding factor, platforms offering multi-value subscriptions, like Amazon, are poised to thrive. Prime Video’s rise is a case study in how strategic integration can outpace even the most established market leaders.
Intan is a Business Analyst at Central Insight. Prior to joining Central Insight, she was a lecturer at Universitas Mercu Buana Jakarta that taught research method. She also has experiences as the lecturer assistant and research assistant at the university. She has several research experiences in social-psychology about scale adaptation and experiment guideline, and three of them were published at credible Indonesian journals. In Central Insight, she has been involved various projects in several sectors, namely digital technology, communication, agriculture, FMCG, and F&B. Intan holds Psychological Science Master’s Degree focused in Social Psychology from Universitas Indonesia, Indonesia; and Psychology Bachelor’s Degree from Universitas Surabaya, Indonesia with a Summa Cum Laude GPA.
Intan is a Business Analyst at Central Insight. Prior to joining Central Insight, she was a lecturer at Universitas Mercu Buana Jakarta that taught research method. She also has experiences as the lecturer assistant and research assistant at the university. She has several research experiences in social-psychology about scale adaptation and experiment guideline, and three of them were published at credible Indonesian journals. In Central Insight, she has been involved various projects in several sectors, namely digital technology, communication, agriculture, FMCG, and F&B. Intan holds Psychological Science Master’s Degree focused in Social Psychology from Universitas Indonesia, Indonesia; and Psychology Bachelor’s Degree from Universitas Surabaya, Indonesia with a Summa Cum Laude GPA.
