IHS: Amazon Device Owners Consume More Prime Video

The adage, “When in Rome …,” appears to apply to owners of Amazon media devices such as Kindle, Echo and Fire TV more than among other streaming device ecosystems.

New data from IHS Markit found that more than two-thirds of Fire TV owners subscribed to Prime Video in the U.S. in the first quarter of 2018 — a higher penetration than for any other connected streaming device, including Roku, Apple TV and Google Chromecast.

This noteworthy as brand loyalty is especially important in video, because entry prices for streaming devices are relatively low, and all of them offer somewhat uniform content offerings, so consumers have a wide range of choices.

While Apple changed the music landscape by tying its transactional music service to hardware more than a decade ago, it is now hard to lock consumers into one content ecosystem.

Consumers expect flexibility and the ability to access their content across devices, so building a fluid ecosystem ensures higher brand loyalty and trust, resulting in increased usage of devices and services and the likelihood of future purchases.

Indeed, Fire TV owners are also more likely to select Prime Video as the “best video service for content on the go” and “flexibility of viewing.” More than 25% of Prime Video subscribers believe Amazon provides the largest content catalog.

They are also twice as likely to turn to Prime Video first when looking for video content to watch.

The findings are part of IHS’ “Connected Devices and Media Consumption” survey conducted in April.

The data would appear to highlight the importance of a proprietary device and user interface that allows consumers to gain access to a wide range of content services, while enabling the device manufacturer to control the user experience.

The value-added benefits of offering streaming devices and video services, in terms of perception and usage along with the ability to maintain their direct-to-consumer relationships and interfaces, has driven other operators and device manufacturers to follow Amazon’s lead, according to IHS.

Fire TV was one of the top sellers in Amazon’s Prime Day in July, and there are rumors of an upcoming user experience update, which is likely to result in improved consumer engagement with Prime Video.

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