Amazon now clearly sees its video service as a standalone offering, rather than just an added extra for Prime members. The service has previously only been available in five of the countries where Amazon offered a Prime membership, so the global launch reflects this shift and a move to compete more directly with Netflix.
Competition for SVOD market share is happening on a global scale, with Netflix and Amazon both operating in over 200 countries. Both also aim to shift to global rights deals, though the studio’s reluctance may limit worldwide deals, especially for TV.
The impact on competition in Australia and New Zealand is expected to be minimal in the near term as Amazon’s content doesn’t match existing offerings. However, it can be expected that the content will improve given Amazon’s investment in original content. Furthermore, as Amazon establishes a local retail presence, Amazon is likely to build a broader content library in Australia as a driver for Prime memberships.