Amazon if any wants to add more Prime members with its move today of adding Instant Videos to Amazon Prime. Less than 5% of Amazon customers are Prime members but this lot spends 130% more than the non-prime Amazon buyer and Prime members are 92% more likely to renew their membership. Throw in a few freebies like Instant Video to increase value of the Prime membership and you start targeting the rest 8% as well.
Amazon.com, Inc. (NASDAQ:AMZN) today announced the launch of a new benefit for Amazon Prime members: unlimited, commercial-free, instant streaming of more than 5,000 movies and TV shows. This new benefit is being added at no additional cost -- Prime membership will continue to be $79 per year. Amazon Prime's all-you-can-eat free Two-Day Shipping has already attracted millions of members. Customers can learn more about an Amazon Prime one-month free trial and start watching instantly at www.amazon.com/primevideos.
"Millions of Amazon Prime members already enjoy the convenience of free Two-Day Shipping," said Robbie Schwietzer, vice president of Amazon Prime. "Adding unlimited instant access to thousands of movies and TV shows at no additional cost is a great way to give members even more value for their $79 annual Amazon Prime membership."
Take a deep breath Netflix, Amazon is not a threat. They are trying to guard and make their house stronger.