Unprecedented rise of Amazon Prime
Amazon’s rapid growth in prime service, which offers special discounts for customers brings Amazon one step forward.
According to research firm Morningstar, the Amazon Prime membership, which reached 66 million in the US at the end of 2016, has reached 79 million hani today. This figure also shows that cable TV services, which are very popular in the US, will soon leave the prestige to Amazon Prime.
While 95 million households in the US are watching TV over cable TV subscriptions, Amazon Prime cable TV, which offers TV discounts as well as shopping discounts, music broadcasts and various priorities, seems to be close enough.
What are the advantages of Prime subscriptions?
Prime subscribers pay $ 8.99 a month as an alternative to cable TV only when they want to get TV service. They get the opportunity to watch HD TV broadcasts, series and movies wherever they want. Cable TV subscribers can only watch TV at home. On the other hand, when they pay $ 1 more for Prime subscriptions, they also get shopping discounts, air cargo delivery, lotteries, music service, and priorities in different organizations. Thus, Amazon directs people to use e-commerce services of Amazon over the softness of the US people’s TV viewing habit and grows it by doubling the accumulated dollars.
Will Amazon be a monopoly?
On the other hand, the legal limits on cable TV are not yet applied to online services. It is forbidden for a cable company in the US to have more than 30% of the cable TV market. It seems that the US administration, which had been monopolized for many years on this page, had no illusions about its anti-monopoly practices in such fast-paced online shopping and online services.
However, while technology is still very new and there is no alternative to Amazon Prime, it is not possible to limit this market to a market. The US administration can still control Amazon’s prime service, such as exorbitant pricing or favoritism of different brands, using its dominant position. Having reached 79 million, Amazon Prime is looking at everyone with a certain eye to face anti-monopoly practices soon.
The US cable broadcasting industry is currently struggling not only with them but with online publishing services like Netflix and Hulu. When small local cable TV companies do not participate, Netflix has more than 50 million subscribers in the US alone, despite the large companies’ total cable TV subscriptions not exceeding 50 million. The fact that these 50+ million people watching cable TV are now following their sequences and movies from Netflix is considered a sign that the cable TV industry is about to die.