Is Amazon Following The Footsteps Of YouTube And Netflix?

Jaycee De Guzman November 12, 2013 0

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If you are wondering what most people are doing on the internet, they are usually watching their favorite television series on Netflix or YouTube. According to the September data on the Global Internet Phenomena from Sandvine, these two online video platforms have dominated the internet traffic especially in the United States. Given that video content is always expected to dominate online traffic because of the required information, it is still something to consider when the numbers get into a level that most people did not expect. For instance, it was just last year when Netflix and YouTube gained 47.8 percent of the total downstream traffic – which means the content internet users are watching and not creating. In this year, the two platforms got 50.3 percent. Although Netflix actually fell back a little bit, YouTube remained on gaining more users.

Other Online Video Platforms

Is Amazon Following The Footsteps Of YouTube And Netflix?Other than Netflix and YouTube – which are considered as the leaders of providing online video content, there are also the Hulu and Amazon. Unfortunately, it seems that both of these websites are losing even more than they already have. For instance, two months ago, Amazon only had 1.6 percent of the total downstream traffic. In the late 2012, it still had 1.75 percent. On the other hand, Hulu’s total downstream traffic last year was 1.38 percent. But last September, it fell down to only 1.29 percent.

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The good thing is that Amazon is going to release its first ever original series in its video streaming services. On Friday, the first few episodes of Alpha House are going to be available to subscribers of Amazon Prime. It seems a familiar step to take for online video providers to finance production so that they can gain more users. House of Cards, for instance, was Netfilix’s first original content. And, so far, it is still a popular television series and it gained Netflix more viewers. Richard Greenfield, a member of the BTIG which is an institutional broker in New York, said that the main reason why Netflix remained popular is because of its original content.

Amazon And Netflix Numbers

Last month, Netflix said that it has 30 million subscribers and even more. Amazon, on the other hand, refused to reveal the numbers of its Prime users. However, according to R.J. Hottovy who is a member of the Morningstar, Prime had at least 10 million users and is being accounted for one-third of Amazon’s total profit. Unfortunately, not all individuals who use the Prime are using the online content service to watch videos. However, Thomas Szkutak, the chief financial officer of the company, is saying that its new streaming service inspired its customers specifically in paying the $79 fee.

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