Amazon Prime Video is in the basement of streaming companies. It has more movies and shows than any other streamers, but just 6% of consumers prefer it over the competition because of its poor content quality. Even giving every Amazon Prime member an automatic subscription hasn’t helped. It’s a sharp contrast to Amazon’s success in delivering what customers want in other areas, such as retail and groceries.
But Amazon’s recent $8.5 billion purchase of MGM Studios is about to change that. Consumers who want a relaxing night on the couch with their favorite Rocky or James Bond movie, or spending family time watching Gone With the Wind, will have more reason than ever to choose Amazon Prime Video over the competition. And by focusing on this large market segment, Amazon will increase its customer base, improve its brand position, and earn greater customer loyalty for its next streaming move – using MGM Studios to create dynamic new content.
Any company can use the niche strategy to maximize marketing and branding results, earn more revenue, and avoid conflict with the competition. There are three key considerations:
- Find a niche that is not prioritized by the rest of the market. With industry leader Netflix spending billions on new content, and Disney+ focusing on new content around action films and shows for kids, Amazon Prime Video can capitalize on a totally different market segment.
- Have a product or service that nobody else offers. Amazon is about to exclusively offer some of America’s most popular movie franchises.
- Get more bang for the buck by developing a high-quality marketing and branding program that narrowly targets the niche. By ignoring the competition and tailoring all messaging to its specific audience, Amazon will be able to see what works and what doesn’t, make changes quickly, and win more customers.
It might take some time for Amazon Prime Video to increase its customer size and brand loyalty, given its poor ranking among streaming customers. Once it happens, however, the competition better watch out – the company will be well-positioned for expansion into developing new content.