Tag Archives: nflx

Amazon set-top box could mark start of Netflix offensive

Amazon.com’s long-rumored television set-top box could launch in March, Re/code reported Friday, a move that could signal an offensive against streaming video rival Netflix. Amazon’s device would compete with products on the market from Apple (AAPL), Google (GOOG) and Roku, which stream Netflix (NFLX) and other over-the-top Internet video services. But the Amazon box would put its own content, namely Amazon (AMZN) Prime Instant Video, front and center. To date, Amazon has treated its video service as a nice extra for its Amazon Prime subscription service, which offers free two-day shipping on millions of items from the e-commerce website for $79 a year. Amazon Prime customers get unlimited streaming of thousands of movies and TV shows. Amazon currently does not offer the streaming video service on a standalone basis. But with a set-top box on the way and talk of a price increase for Amazon Prime, that could change…

FCC to give net neutrality rules another try

The Federal Communications Commission plans to write new rules to prevent Internet service providers from charging fees to companies like Netflix (NFLX) and Google (GOOG) to reach consumers at the highest speeds. The FCC said Wednesday it wants to ban broadband Internet providers like Comcast (CMCSA) and Verizon Communications (VZ) from blocking or slowing down access to any websites. U.S. courts have ruled against the FCC’s last two attempts to enforce so-called “net neutrality.” But the government agency says the policy is crucial to keeping the Internet free and open and allowing smaller companies to compete with larger firms. Internet service providers want the option to charge fees to content companies that use more bandwidth. But the FCC says that would give ISPs the power to determine winners and losers online and to crush potential over-the-top video services like Netflix. On Jan. 14, the U.S. Court of Appeals for the…

Amazon Prime churn high, but new membership growth higher

Customer churn for Amazon.com’s (AMZN) Prime subscription service was high even before the e-commerce leader revealed that it’s considering a price increase, a new study shows. A survey by Consumer Intelligence Research Partners released Thursday found that 23% of Amazon (AMZN) Prime members do not renew. On the plus side, 39% of Amazon customers subscribe to the $79-a-year service, and the e-tailer has been able to attract enough new subscribers to more than make up for the churn, CIRP says. The percentage of Prime members grows to 45% when you include the company’s Amazon Student and Amazon Mom memberships. “Prime membership is growing even as customers already cancel memberships at a higher-than-expected rate, and a price increase could dampen membership growth,” the research firm said in a press release. Among those who canceled Prime service, about three-quarters of them did so because of the cost, said CIRP co-founder and partner Josh Lowitz. “One way to look at this is that Amazon Prime is not for everyone, but trying out Amazon Prime is for almost everyone,” he said in a statement. CIRP estimates that Amazon had about 26.9 million Prime members as of Feb. 7. That’s up from its estimate of 16.7 million Prime members as of Sept. 30 . Amazon Prime offers free two-day shipping on millions of items and unlimited instant streaming of thousands of movies and TV shows, a service that competes with Netflix (NFLX). Prime members are among Amazon’s best customers because they spend more on the e-commerce website than do non-Prime customers.