Netflix and Amazon are both competing against each other in the video streaming market over in the United Kingdom, but there is also an unintended victim that will experience the fallout from their fierce competition. With sales and subscriptions to premium video on demand companies like Netflix and Amazon, the sky is the limit as to how much content they can produce and offer to their customers.
As is the way with all innovations, Netflix has been credited over the years with the extinction of the video store. Blockbuster was the last major holdout in that market and they went head to head with Netflix by offering mail order DVDs. But streaming video is what put the final nail in the Blockbuster coffin.
So once Netflix got its first stranglehold over the streaming video market, Amazon came along and offered a Prime subscription service that mirrored Netflix in every conceivable way, taking a chunk out of their market share by offering premium a-la-carte streaming movies on their platform. That also included perks with Amazon Prime, such as two-day shipping and Prime Music, among others.
— Mary Kay Evans (@TheMaryKayEvans) June 8, 2017
Now it appears as though this fierce battle between Netflix and Amazon will have a drastic effect on the box office overseas in the United Kingdom, with Deadline reporting that the two streaming giants could overtake the cinema market share by as early as 2021.
There is no doubt that both Netflix and Amazon have a dedicated subscriber base who love the premium content they put out. That goes even further for their original content, which includes shows like The Crown and The Grand Tour becoming a popular favorite for those who enjoy content about their homeland.
Even though the convenience factor could have played a major role in this new study, which came from independent firm PwC, the trend here is what the pacing of the market shares are for Netflix and Amazon as of right now with historical data compiled as well. In an effort to forecast the growth of both streaming companies, the report indicates that the market share for the two video-on-demand companies will overtake the British box office in less than four years.
— Bloomberg (@business) June 17, 2017
There is no historical precedent for this, given that the consumption of media after the box office run with VHS, DVDs and Blu Rays have never overtaken any American or British box office market.
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