Quick update to yesterdays numbers from the Amazon Prime report by CIRP. GeekWire:
In its quarterly earnings report posted today, the Seattle tech giant noted that paid Prime memberships around the world increased by 51 percent in 2015, and by 47 percent in the U.S.
The growth is consistent with 2014, when Prime memberships grew by 53 percent.
Given this relative growth in the US, Amazon Prime should, if it hasn’t already, cross the magical number of half of all U.S. households in the very near future.
When this happens Amazon would do well to at least once communicate an absolute number for the U.S. (instead of relative growth rates)
Not only would this send a strong signal to Chinese manufacturers. It would also send a strong signal to any marketplace participator to maybe seriously consider “Seller Fulfilled Prime” and reaping the profits.
Prime is already a strong driver of Amazon’s business (giving that Prime subscribersy buy far more at Amazon than customers who are non-subscribers) but regarding Prime I would still stress that we haven’t seen anything yet. Half of all households in markets as attractive as the US having access to Prime offerings from Pantry to Dash ordered consumables will have tremendous ramifications over the next years. (And, on a sidenote, I can’t think of a stronger moat.)
From the press release:
In 2015, worldwide paid Prime memberships increased 51% — 47% in the U.S. and even faster outside the U.S.
Prime Video continues to grow internationally with nearly double the streaming customers compared with fourth quarter 2014.
Amazon talks a lot about its video offerings in the press release. For obvious reasons: Prime Video is a main driver of Prime adoption itself and, going forward, it will help establish the Fire TV platform.
More on Amazon Prime: