Amazon's percentage of downstream traffic DECLINED from 1.75 percent to 1.31 percent.
Netflix held very steady at 32.3 percent (from 33 percent).
Netflix went from 18.8 times Amazon to 24.6 times Amazon over the last 6 months.
Let that sink in, Netflix has 24.6 times the traffic of Amazon Streaming.
Game over. We now know that people sign up for Amazon Prime for the SHIPPING (Duh!) and not for video streaming. We now have concrete proof that Amazon Prime Video Streaming is a bust. Amazon is spending up to 1/2 to $1 billion a year for content catalog, and for what? to be 1/25th the size of Netflix in terms of streaming? There shareholders are going to be pushing Bezos to pull the plug on streaming expenses.
AMAZON PRIME VIDEO STREAMING IS OVER, DONE, KAPUT.
Important to note that Netflix's numbers dropped a bit, but the ratio seems legitimate. Given that they are so far behind you would really expect it to be easy for Amazon to show progress not losses. I don't know what would make Bezos pull the plug, it won't be the shareholders likely but we'll see. Maybe they will pull a Walmart and feed all their customers to Netflix in exchange for Netflix promoting Amazon for DVD sales.
Here's the little problem with that but it wont' matter. NFLX chews up all that bandwidth on the web, but only gets 8$ a month from subsribers for it. Soon the ISPs are going to figure that out and either start charging more for their heavy consumers or turn it back on NFLX to pay more. Sort of a tax on NFLX.
Just the opposite, Netflix streaming is one of the main draws for customers to choose bandwidth. So much so, there is discussion of the table whether Netflix should charge the carriers for the right to have Netflix.
What would happen to an internet provider if they didn't have Netflix versus competition that did have Netflix? The scenario of Netflix charging carriers might never come to pass, but that is doubly true for the opposite assertion that carriers will charge Netflix. That thought is as silly as cable carriers charging Disney for carrying ESPN.