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Why Retailers Are Afraid Of Amazon’s Video Streaming Service


While Amazon’s focus on video streaming may seem like a blow against Netflix, research suggests it’s actually a bigger threat to retailers.

According to a study by Cowen & Co, 66% of Amazon Prime households are also Netflix subscribers and another 10% have access to Netflix, Business Insider reports. Those numbers suggest the video-streaming market has room for a number of services and isn’t a zero-sum game.

Yet Amazon Prime members spend an average of 4.6 times more money on Amazon than non-Prime members, and that means they are spending less money at traditional retailers. So as more people become Prime members, possibly drawn in by video streaming, retailers can expect fewer customers. [BI]