There’s several reasons why consumers still prefer Netflix over Amazon, but the new $99 price tag of Amazon Prime isn’t one.
That’s potentially good news for Amazon, which was seeing consumers protest following the announcement that Amazon would be raising the price of its shipping and streaming video service to $99.
According to survey conducted by YouGov, which conducts consumer research on a daily basis, Amazon Prime’s value perception moved only slightly downward, but the $20 price boost led to a significant bump for Netflix. Amazon Prime will now charge $99 a year (or $8.25 a month) compared to the $7.99 a month Netflix and Hulu Plus charges.
The consumer research firm explained price is not the deciding factor. Netflix tends to receive a higher value perception over Amazon and Hulu for multiple reasons, including the company’s larger inventory, critically acclaimed original programming and no commercials.
Since March 13, Neflix’s Value score increased 6 points from 31 to 37. Amazon Prime moved down slightly from 10 to 8, and Hulu Plus’s score dropped from 8 to 3 (YouGov BrandIndex’s Value scores range from 100 to -100 and are compiled by subtracting negative feedback from positive. A zero score means equal positive and negative feedback).
Amazon was hoping the price increase would appear minor since it is the first in nine years, and since the start of the program it has added many perks beyond two-day shipping, including streaming video.
The even bigger loser from Amazon’s moves was Hulu Plus, even though Netflix and Hulu both charge $7.99 a month.
YouGov BrandIndex’s Ted Marzilli tried explaining that one in a statement: “Netflix and Hulu Plus have the same monthly $7.99 fee, so they provide a very easy comparison model. Amazon Prime’s price changes seem to have made a number of consumers reconsider the value proposition of these other two competitors. In that value bake-off, Hulu Plus seems to be losing traction, mostly likely because of the ads shown on broadcasts and sheer programming comparisons. For $7.99 a month, consumers don’t seem to be keen on seeing ads, especially when they don’t exist on Netflix.”