Amazon Prime Video's U.S. Penetration Hits 45%

Amazon Prime Video subscriber penetration reached 45% of U.S. internet households as of third-quarter 2021, according to data from Parks Associates.

About 71% of the 77.3 million Amazon Prime members as of Q1 2021 watched Prime Video, according to the firm’s OTT Video Market Tracker.

Amazon recently increased the price of Prime membership by $20, to $139, but Parks thinks this won’t affect the video service, given the broader context. 

“Amazon's Prime pricing rise, the fourth in its history (chart above), comes barely a month after Netflix raised its fees, while Hulu raised its prices last year," points out Eric Sorensen, senior contributing analyst at Parks. 

“Amazon also debuted its ‘Lord of the Rings’ trailer during the Super Bowl this year, so the firm obviously hopes the value they are bringing in content will offset any consumer reluctance to pay higher prices. With inflation and the cost of content on the rise, we will likely see more providers start to slowly raise their subscription prices, trying to find that balance between revenue growth and consumer value.”

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