Amazon is testing a $7.99 monthly price point for Prime which currently only offers a $79 annual option. As I’ve written on in the past, Amazon has added a variety of services and offerings to Prime. While Prime started with a focus on shipping options, it has blossomed into much more While many have focused on Amazon’s push into the video streaming market through Prime, I question what Prime might mean for the future of the broader OTT market. The OTT market is a competitive (and arguably crowded) space. Netflix has some 25 million subscribers in the United States. Hulu Plus has over 2 million subscribers. With about 116M U.S. households there is some upper-bound on the possible number of subscribers. Backwards deduction would suggest that in order to remain a viable competitor in the competitive and crowded OTT space we will see an expansion of services and offerings. As opposed to focusing on Amazon’s push into the OTT market, I expect to see others push into non-traditional services and offerings.
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