Amazon India is having a tough year. The start of 2019 could have been worse for the US giant. The new FDI policy has hit the company hard. Amazon India recorded a $45 billion loss in a month when the FDI policy went live. This is how bad a start of this year has been for Amazon India. However, Amazon Prime is doing extremely well for the company. It is currently ruling the OTT platforms in India. However, it might not stand there long.
Amazon Prime is a subscription program of Amazon which has worked wonders for them. Customer retention has increased immensely as it offers a lot of things other than the video streaming platform. The Prime membership offers one-day delivery, two delivery and also free deliveries. If you are an Amazon Prime subscriber, none of the deliveries are paid and rapid deliveries is another incentive. Above all, one can enjoy the amazing video streaming platform.
That said, there was a problem previously, as the content was not enough for the Indian audience. Now the vernacular approach of Amazon has helped its reach and it is reaching deeper in the Indian market. This has created an audience for the video streaming platform of Amazon. Apart from this, Amazon also has Amazon Music, which the customers are able to avail at the same price.
Coming back to the problem, the content was not vernacular, plus it had some below average shows and the ratings were poor and it had no originals released. However, with time everything has improved, the quality of the show is higher and there are some fantastic originals on the platform. This has increased the number of subscribers as well as viewers.
That being said, Velocity MR, a market research company did a survey on OTT platforms. The survey asked people which platform they would consider and which platform they prefer. Over 2,100 samples were analyzed and Amazon Prime came out as a winner. 72% of the people watched Amazon Prime while Netflix and Hotstar followed. Netflix garnered 56% of the votes while Hotstar stood at 50%. This was for the time period between February 12 to March 3rd.
This has a lot to do with content and the price. Netflix is available for prices around INR 500 to INR 800 per month while Prime is available for just INR 129 per month and it offers a lot of more than just streaming services.
Netflix feeds off its original content but the bundle of services Amazon Prime offers at an aggressive price makes it more and more viable for the customers. That said, this news comes a pleasant surprise for Prime and in these tumultuous times, it would consider it as a small victory, if not anything else.