Amazon VS. Netflix: and the Roku arena
Amazon or Netflix, who will come out on top? That’s the question Brad Stone of the New York Times is looking for an answer to. It comes down to pay model structure, Netflix offering a month’s subscription to all their movies and TV programs for 8 dollars, while Amazon charges 2- 3 dollars per view of their movies and shows.
The Catalyst Group, which looks into how technology is used, based in New York attempted to gain insight into possible answer to this question with a study involving extensive interviews with 11 people in August. These 11 people were introduced to the Roku player, a set top device costing roughly $99 which allows internet access to both Netflix and Amazon video on demand through the user’s television set.
Nick Gould, the chief executive at Catalyst described the most surprising finding that participants in the study were unaware that such technology existed to allow them instant access to a large catalogue of programs. “They were shocked that this is something you can do. Early adopters aside, the availability of a service like this is still not universally known,” Mr. Gould stated.
With this finding, the choice between Netflix and Amazon Video came down to the expectations and uses of customers. Netflix and its set monthly subscription rate for both mail DVD and internet content service, won out with habitual movie viewers, while Amazon capitalized on the familiarity of customers with the pay per view model.
Although users had different views on which service was better, their main criticisms of both were unanimous. The necessity to swap from computer to TV to set up and manage “watch instantly” queues in terms of Netflix or activate video with Amazon. The separation between TV and PC, even with the Roku player, and the difficulty with search and settings features are the detriment to both services. Mr. Gould sums up the feelings of the studies participants saying: “The parties were unanimous in their wish that more of the experience be away from the computer, people are expecting and really preferring a simpler, more straightforward experience that doesn’t involve the PC.”
This desire for separation of PC and TV can also be seen in a different light as simply a desire for a much more efficient and easy to use integration of PC and TV. It sheds light on the fact that while watching TV and movies on computers is becoming increasingly popular, the TV has a place. People still want to be able to sit in front of the large screen in a comfortable living room to watch their favourite shows, it is simply the way of getting access to the show that is changing. Netflix and Amazon are major parts of this change, and are engaged in competition for the largest customer base. They each have proponents with differing views, but both services have a common disapproval which they need to overcome, bring the easy to use internet to the big screen.
-D. Cress
