retail news in context, analysis with attitude

…with brief, occasional, italicized and sometimes gratuitous commentary…

Fortune has a story saying that "Amazon Prime ended 2019 with 112 million U.S. users, according to Consumer Intelligence Research Partners (CIRP). That's up from just over 100 million at the end of 2018 and more than double the 50 million Americans who were using Prime at the end of 2015."

The story says that "the CIRP study says the way people pay for Prime is changing. After Amazon launched a monthly subscription plan in 2016, 21% of Prime subscribers were paying monthly for the service, according to CIRP data. Now, 52% of subscribers opt for the $12.99 per month plan instead of Amazon's annual Prime subscription rate of $119."

If more people are paying for Prime on a monthly basis even though it is the more expensive way to go, that suggests that they don't have the $119 at one time … which means that Prime is become more of a force even among folks who are financially strapped. That sounds important to me.

• From Variety:

"Netflix is keeping its foot pressed firmly on the gas pedal in the streaming-video road race. The streamer will invest around $17.3 billion this year in content on a cash basis, according to a new forecast by Wall Street firm BMO Capital Markets. That’s up from around $15.3 billion in 2019," but not as much as the more than $26 billion that it believes it will be spending annually by 2028.

That's the cost of being in business. There are so many streaming services now competing for eyeballs and money, Netflix has to come up with more proprietary content - its version of private label - if it is going to remain viable. There's a good lesson there for every marketer.
KC's View: