Amazon Offering 99-Cent Third-Party SVOD Subscriptions Over Prime Day

Amazon is set to again offer U.S. Prime Members special 99-cent monthly pricing for select third-party subscription VOD services over Prime Day, Oct. 11-12. The special rate lasts two months and then reverts to standard pricing unless canceled.

While the promotion is associated with a significant lift in sign-ups for the participating SVOD services, these subscribers overall tend to have a lower retention rate, according to new data from Antenna Research.

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On average, the streaming services that participated in the Prime Day promotion saw 43% more subscriptions via Amazon Channels on the month of the promotion vs. the previous month.

In terms of gross volume, Paramount+ saw the greatest number of sign-ups via the promotion for the past two years. In July 2022, it saw 424,000 subscribers alone. Starz, with 295,000 subscriptions, saw the second greatest number of sign-ups.

However, AMC+ saw the greatest monthly increase from June 2022 to July 2022. It more than doubled their new subscribers in July, with 49%of these users coming via the Prime Day promotion.

Looking back at last year’s Prime Day, it is clear that the promotional subs tend to behave differently than non-Prime Day subs. The participating services tended to have 10% higher churn after the promotional pricing ended than non-promotional subs.

On average, premium SVOD Services saw a 16% difference between Prime Day subscribers and full-price subs. For specialty SVOD services, the difference in churn was slightly less steep with a 12% difference.

BET+ had the lowest churn (8%) among Prime Day subscribers, however it also had the lowest churn among full-price subscribers.

Fire TV Stick, Echo Dot Amazon Prime Day Best Sellers

As expected, worldwide sales of Amazon’s Fire TV Stick streaming media device and Echo Dot wireless smart speaker topped the e-commerce behemoth’s annual 36-hour Prime Day sales event that ended July 17 at 11;59 p.m. PT.

The company said more than 5 million Fire TV Sticks were sold, while Prime Day was the biggest sales event for the Echo product line.

The Toshiba 4K Ultra HD Fire TV Edition (50-inch) and Toshiba 4K Ultra HD Fire TV Edition (43-inch) emerged as Amazon’s best-selling TV deals in the company’s history – selling more than six times as many combined TVs compared to last year’s record-setting Fire TV Edition.

“Extending Prime Day to a day and a half this year allowed us to further reward members with … deals, access to exclusive new products and … experiences that highlight the many benefits of a Prime membership,” Jeff Wilke, CEO worldwide consumer, Amazon, said in a statement.

Prime members across 17 countries purchased more than 100 million products, with Whole Foods Market customers in the United States offered week-long savings.

Members purchased more than five million items in each of the following categories: toys, beauty products, PCs and computer accessories, apparel and kitchen products.

Top sellers from around the world, excluding Amazon devices, included:

  • U.S.: Instant Pot 6 Qt 7-in-1 Multi Use; 23 and Me DNA Test; LifeStraw Personal Water Filter
  • U.K.: Bosch Cordless Drill; Philips Hue Personal Wireless Lighting Light strip; Finish Dishwasher Tablets
  • Spain: SanDisk Ultra 64GB memory card; Cecotec Conga Excellence 990 4 in 1 iTech 3.0 robot vacuum cleaner
  • Singapore: Coca-Cola Zero Sugar; Play-Doh Shape and Learn Shape a Story; Kleenex Ultra Soft Toilet Tissue
  • Netherlands: Osmart Zigbee Smart Plug; Philips Hue White Ambiance GU10 LED Spot; Sandisk Micro SD
  • Mexico: Ace Powder Laundry Detergent; Amazon Basics USB Lightning Cable
  • Luxembourg: Jamie Oliver Tefal pan; Brita water filter; Solar-lamp in Preserve Jar with USB connector
  • Japan: Top Super Nanox Liquid Laundry Detergent + Extra Large Refill, SAVAS Whey Protein 100 cocoa flavor 1050g
  • Italy: Finish Dishwasher Tabs All in 1 Max; Braun Multi-grooming Kit Precision Trimmer 9-in-1 for beard Styling; Hoover Rechargeable Broom 2-in-1 Freedom
  • India: Redmi Y2 Gold 32 GB smartphone; Tata salt; Mi 10000mAH Li Polymer Power Bank 2i
  • Germany and Austria: PlayStation Plus Membership; Jamie Oliver Pan by Tefal; Osmart Zigbee Smart Plug
  • France: PlayStation Plus Membership; SanDisk Ultra 64GB memory card, TP Link Wi-Fi connected plug
  • China: Philips Sonicare Healthy White HX6730 Toothbrush; Braun Digital Ear Thermometer; Paul & Joe Beaute Moisturizing Foundation
  • Canada: Instant Pot 6 Qt 7-in-1 Multi Use; LifeStraw Personal Water Filter; Bose QuietComfort Noise Cancelling Headphones
  • Belgium: SanDisk Ultra 128GB memory card; Osmart Zigbee Smart Plug; Philips Hue lightbulbs
  • Australia: PlayStation 4 Pro 1TB Console with Bonus Fortnite Content; FIFA 18 for PlayStation 4; Philips Hue lightbulbs

Amazon Prime Day: Lots of Home Entertainment Deals

Amazon’s website and app may have glitches. Fulfillment center workers in Europe are on strike. But that hasn’t put much of dent (thus far) into the ecommerce behemoth’s 36-hour “Prime Day” retail extravaganza, which ends July 17 at 11:59 p.m. PT.

“Nobody does any business in July … Amazon intends to take over the world, and they’re doing a pretty darn good job of it,” retail consultant Jan Kniffen told CNBC last year.

Day 1 (July 16) saw Amazon’s stock hit a record $1,841.95 per share, making founder/CEO Jeff Bezos the world’s richest person (cracking $150 billion in net worth) in modern history – exceeding No. 2 Microsoft co-founder Bill Gates’ net worth by $55 billion!

Amazon shares declined following Netflix’s subscriber growth miss to close at $1,822.49 per share.

Amazon’s website suffered temporary outages at the begin of Prime Day, which analysts attributed to user demand and resulted in some lost sales.

“I think it [was] more of an impact on the customer experience and consumers who tried to get on the site and couldn’t find anything and realized they would have to come back,” Sucharita Kodali with Forrester Research told CNBC.

Prime Day’s offerings feature myriad packaged media deals, including hundreds of $14.99 4K UHD Blu-ray movies such as The Dark Crystal, Terminator 2: Judgement Day, Batman v. Superman – Dawn of Justice, John Wick, The Incredible Hulk, Apollo 13, The Accountant, Starship Troopers, E.T. The Extra-Terrestrial, Dredd, Battleship, The Mummy, Lone Survivor, Everest, King Kong, and Close Encounters of the Third Kind, among others.

Boxed sets include, Paramount Home Media Distribution’s The Godfather 3-Movie Collection($10.20), HBO’s Game of Thrones Seasons 1-7($74.99), and Warner Bros. Home Entertainment’s Harry Potter Complete 8-Film Collection 4K UHD($79.98).

Streaming media deals include Fire TV Stick with Alexa voice remote ($19.99), Fire TV with 4K Ultra HD and Alexa voice remote ($34.99), and Fire TV Cube with wireless Echo speakers ($89.99).

TCL 32-inch and 40-inch Roku TVs for $129.99 ($70 off) and $194.99 ($95 off), respectively. Toshiba 50-inch Amazon Fire TV Edition for $289.99 ($110 off), and LG 55-inch and 65-inch OLED TVs for $1,696.99 ($300 off) and $2,296.99, respectively.