Amazon cut a deal with Viacom that will stream key channels such as MTV, Nickelodeon and Comedy Central to Prime subscribers.
The aim here boils down to this:
- Amass enough content to realistically get Amazon Prime subscribers to dump Netflix.
- Provide a content ecosystem for the Kindle Fire.
- And if that doesn't work out at least garner Prime subscribers solely based on video.
It's no secret that Prime subscribers shop more on Amazon. Prime---not to mention daily streaming video and devices like the Kindle---are Amazon's way of staying in your life. It's all about the touch points.
Overall, Amazon is doing a good job hitting those touch points. In the end, you may just shop more. Whether I dump my Netflix account for Amazon's video remains to be seen. For now, it's two subscriptions.
Amazon telegraphed this content deal on the company's fourth quarter conference call. Tom Szkutak said:
Well, for digital video we have a couple of different offerings. One is a paid or rental offering as part of Amazon Video.We also have a service that's part of Prime.We like both of them.We have put some comments in the release about the growth rates associated with those. And on the Prime that's in video, we actually like what we see there also. And so it's still early, but we like what we see.We are investing in digital content. We are seeing great adoption.We're looking at it very carefully to understand a lot of different metrics around that business, as you would expect. And it's still early, again.We really like what we see so far.We're going to continue to monitor it closely, but we will be continuing to add content there.