14/11/2017 – 11:08am
AdAge reckons Amazon is eyeing a potentially massive change to how it runs its Amazon Prime Video service. According to the report, Amazon is looking at making Amazon Prime Video free – i.e. decoupling it from its Amazon Prime package.
This would be a ballsy move, a move designed to help it grow its subscriber base and close the gap between itself and Netflix. It also means adverts – lots and lots and lots of adverts. Plus a limited selection of content.
So, yes: Amazon’s freemium service would probably suck pretty bad, especially if you’re used to the normal, Prime version. Still, it could be enough to get punters into the mix and then convert them to the premium package. It worked for Spotify, after all.
How it would work is simple: advertise free service, get millions of people in there, hope said millions of people get so angry with adverts they impulse buy the premium service. Repeat.
So what would you get in this “free package”? Content from its “back catalogues of TV and movie studios, looking to beef up its children’s programming.”
Why Go Freemium Now?
Simple: the video on demand space is CRAZY competitive. Disney is lining up its own service for 2018, Netflix is going from strength to strength, and Apple is working on its own service too. Basically, it’s one big fight for dominance and all bets are off on who can catch and beat Netflix.
Apple, for instance, will apparently invest $1 BILLION in original content and shows for its TV initiative. Netflix is constantly upping its output, meanwhile, so Amazon needs to ensure it is very much on the offensive too. And perhaps going freemium is the way to do that?
Read our review of Amazon Prime Membership for a breakdown of what’s offered.
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