Netflix is Losing Market Share as Amazon Prime Video Continues to Grow

Stranger ThingsThe battle for your streaming dollar is growing ever tougher, and for the first time in many years Netflix is losing ground.

A new study released by Digitalsmiths, which studied 3,140 peoples’ viewing habits, gives us an interesting look at what services cord cutters are using. Overall 61.9% of respondents said they subscribe to a video streaming service, which is up 5.6% from 2015 and up 13.7% over the last 3 years.

Here are the services the subscribers said they used.

(Note: The question is what services do you USE, not pay for. This is most important for the Amazon Prime numbers because these numbers show people who use the Prime Video service not people who subscribe to Prime.)

While there is no major shakeup as the top 3 remain unchanged there is an interesting change in the path of the top two streaming services.

Netflix has had steady growth for the last 3 years, growing from 41.7% in 2013 to 51.8% in third quarter 2016. However, there has been a drop in Netflix’s market share in 2016. Back in the second quarter 2016 Netflix had a 53.7% market share, which dropped to 51.8% in the third quarter 2016.

Many are pointing to the recent Netflix price increase and decreasing catalog as the reasons behind the dwindling subscriber counts; however, some of it also has to do with the fact of an ever-growing market. No longer is Netflix the only service out there that offers great movies and TV shows.

Now as Netflix’s numbers are dropping, Amazon Prime’s numbers continue to grow from just 12.9% in 2013 to 24.8% in 2016. And, Amazon Prime has seen growth year after year even with price increases.

Although Netflix seems to still have a solid lead over its competition it is starting to raise the question of how long. For now we will have to wait and see if Netflix’s move to focus on original content will pay off.

Please follow us on Facebook and Twitter for more news, tips, and reviews.

Need cord cutting tech support? Join our new Cord Cutting Tech Support Facebook Group for help.