Amazon takes targeted tack for future global growth | Online Video | News | Rapid TV News
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The availability of rapidly growing online video provider Amazon’s Originals video service in over 200 countries is fuelling the future battle for global share in the video industry, says a research note from Futuresource Consulting.

futuresource 13 JanAccording to principal analyst David Sidebottom, Amazon’s response to subscription video-on-demand (SVOD) leader Netflix’s aggressive multi-territory rollout is indicative of the trend towards the increased globalisation of the content sector, as service providers seek to benefit from economies of scale across technology, content rights and the ability to increase the return on their original production investment across a larger user base. He adds that the move is also illustrative of the continued emergence of the over-the-top (OTT) channel business, enabling consumers to effectively build a pay-TV package with direct to consumer services, something outlined in the company’s Living with Digital consumer research survey.

Sidebottom suggests that Amazon’s global deployment now means it must rely on the quality and interest in content alone, and more specifically its own content. “With an estimated USD$3 billion earmarked on spend per year – and rising, led by Top Gear re-incarnation, The Grand Tour, its commitment to offer quality and differentiation is clearly visible,” he added.

“It is perhaps this differentiation which is resulting in consumers opting to take multiple services, with little overlap in content offering. In the US over 50% of Netflix subscribers also use Amazon Prime Video. Amazon’s Originals App is not expected to significantly change the subscription video landscape in many ‘new’ countries immediately, largely due to the relatively limited nature of the offering. But with the investment it is placing in its overall Amazon service in India, including additional Bollywood content on Prime Video, it is evident that Amazon has a very targeted approach for future global growth, as its impressive momentum continues.
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