Will Amazon’s Golden Globe ‘transparent’ Win Mean More Subscribers?


When Jeffrey Tambor won a Golden Globe Monday night for his starring role in Transparent, it had been the very first time Amazon.com had received a thank-you shout-out from the stage of a marquee Hollywood award show: The web retail giant, Tambor said, is his “new companion.” Amazon was believe it or not pleased. Better still, winning a Golden Globe for best television comedy for Transparent instantly afforded its Prime Instant Video platform newfound credibility as a venue for first-rate original programming. The win for best TV comedy, actually, let Amazon surpass Netflix in the race for streaming-video awards: House of Cards has up to now won Golden Globes limited to its stars, including last night’s win by Kevin Spacey.

Will the exposure and costume accolades doled out by the Golden Globes help lure new Prime customers? There’s evidence that the tiny statuettes might help. “Prestigious awards do assist in driving subscribers,” says Laura Martin, a media analyst for Needham & Co. “That’s what happened with Netflix, and we’d expect that to occur with Amazon.” The chart below shows precisely how the award-winning effect coincided with gains in subscribers for Netflix, though it is difficult to state how many clients signed up to view House of Cards or Orange may be the New Black, which won lesser honors eventually year’s Primetime Emmy Awards:

Ken Sena, a media analyst for Evercore, believes that awards for original programming could be a boon for subscription services such as Netflix and Amazon, even though “it’s sort of hard to quantify.” Subscribers may wait to join up, he says, so it’s not necessarily an easy task to connect the dots. Still, awards can enhance the trustworthiness of the broader service, that may lure subscribers as time passes.

Unlike Netflix, which covets streaming-video subscribers because of their own sake, Amazon’s $ 99-per-year Prime memberships were created in an effort to lure customers in to a extensive relationship with the business. Here’s how Bloomberg Businessweek’s Brad Stone and Joshua Brustein explained the strategy this past year after Amazon raised the annual price by 25 %:

Prime isn’t only a two-day shipping program anymore. It’s turn into a varied loyalty program that draws customers in and seeks to convert them into Amazon addicts. And that costs more. Having said that, Amazon Prime’s streaming media service isn’t costing much of reduced weighed against competitors. Prime’s monthly cost is currently $ 8.25, very little a lot more than the $ 7.99 that Netflix costs for something that doesn’t also include digital book rental and free shipping on a massive range of merchandise.

The Prime price increase is partly the consequence of changes in the manner Amazon itself has used the service-as its prime weapon (pun intended) in the battle against Google and Apple. [Amazon CEO Jeff] Bezos believes, even more so than his rivals, that content (books, music, and so on) could possibly be the gateway drug that lures customers into Amazon’s immersive world of devices and digital services. So during the last few years, he’s got packed digital freebies into Prime membership: 40,000 movies and TV episodes inside Prime Instant Video, plus much more than 500,000 e-books which can be borrowed free, one every month, within the Kindle Owners’ Lending Library.

From that perspective, glamorous awards might help, even if they don’t really result in more Prime members. Martin says Amazon’s Golden Globe has trained with “a confident halo influence on all original programming they’re creating.” An award is “the most effective marketing you can purchase because it’s free and it’s about quality.”


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