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Amazon Prime price change gives Netflix a boost

Article from: 
Fri, 21/03/2014 - 14:27
Ted Marzilli
Amazon Prime

Consumers seem to be taking Amazon Prime’s new $99 annual fee in their stride when it comes to value. However, the move appears to have boosted Netflix's value perception while having just the opposite effect on Hulu Plus.

Since the March 13th announcement, Amazon Prime’s value perception has moved only slightly downward, but Netflix’s has risen significantly.

Hulu Plus took a much bigger value perception hit than Amazon Prime over that same time period. In the wake of the price increase, some consumers may feel that they are now getting a comparatively better deal for their $7.99 monthly fee with Netflix, as both Netflix and Hulu Plus charge the same amount. Even prior to Amazon Prime’s price increase announcement, Netflix enjoyed a substantial value perception lead over its two rivals: the company's larger inventory, critically acclaimed original programming and no commercials may be contributing to the value gap.

Amazon Prime, Hulu Plus, and Netflix were measured with YouGov BrandIndex’s Value score, which asks respondents, “Does it give good value for what you pay?" All respondents were adults age 18 and over.

YouGov BrandIndex’s Value scores range from 100 to -100 and are compiled by subtracting negative feedback from positive. A zero score means equal positive and negative feedback.

Since March 13th, Neflix’s Value score increased 6 points from 31 to 37. Amazon Prime moved down slightly from a Value score of 10 to 8. However, Hulu Plus’ Value score dropped from 8 to 3.

Value: Amazon Prime, Hulu Plus, Netflix
Value: Amazon Prime, Hulu Plus, Netflix
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