Sunday, May 20, 2018

Amazon is Key to Selling Direct-to-Consumer Premium Channels, Study Finds

One traditional concern of programming networks pondering a shift to streaming distribution is the additional cost of marketing direct to consumer. In a linear environment, that marketing effort is undertaken by the distributors (cable, telco, satellite).

As it turns out, the solution for retailing video services is akin to the retailing of many other consumer products: Amazon.

Amazon Prime Channels account for more than half of all direct-to-consumer premium-channel subscriptions, according to The Diffusion Group (TDG).

More than 53 percent of HBO direct-to-customer accounts were purchased from  Amazon Prime Channels. Some 72 percent of Showtime direct-to-consumer accounts were sold that way. Some 70 percent of Starz DTC accounts also were sold by Amazon Prime.

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