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.
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.