International journal of advanced smart convergence

The Institute of Internet, Broadcasting and Communication (한국인터넷방송통신학회)
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A Comparative Study on Over-The-Tops, Netflix & Amazon Prime Video: Based on the Success Factors of Innovation

  • Song, Minzheong (Department of Media Communication & Advertising, Hansei University)
  • Received : 2021.01.06
  • Accepted : 2021.01.15
  • Published : 2021.03.31
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Abstract

We compare Over-the-Tops (OTTs), Netflix and Amazon Prime Video (APV) with five success factors of innovation. Firstly, Netflix offers better personalized service than APV, because APV has collaborative filtering algorithms to recommend safe bets, not the customers really want. Secondly, APV' user interface is undercooked to lock the members in, even if it has more content and better price offer than Netflix retaining its loyal customers despite the price increase. Thirdly, Netflix has simple subscription model with three tiering, but APV has complicated pricing model having annual and monthly, APV and Prime Video (AV) app, Amazon subscription and extra payment of Amazon Prime Channels (APCs). Fourthly, Amazon has fewer partnership than Netflix especially when it comes to local TV series. Instead, Amazon has live TV channel collaboration including sports content. Lastly, both have strategic and operational agility in their organization well.

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