Amazon Channels’ aggregation of third-party streaming services enhances the consumer appeal of its wider video proposition, provides incremental revenues and increases the stickiness of the Prime shopping service

Content partners range from major players (e.g. Discovery and ITV) to the more niche (e.g. MUBI and Tastemade), who all benefit from a ready-made platform, billing relationships and a receptive subscriber base. But the revenue shares, data costs and lack of direct customer relationships remain too high a price for some

Two and a half years on from its UK launch, opportunities for live, ad-supported and bundled content are diversifying the platform, but Amazon must prioritise discovery within Prime Video to continue to flourish

Contents

The importance of Amazon Channels

Apple is following a similar line with TV Channels

Amazon Channels by country

More services at lower price points

Prioritising major services

The implications for UK content partners

The benefits

The costs

On-demand suits reality and drama, but live video is crucial for major partners

ITV Hub+

The future of Channels

Implications for Channels partners in the UK

Competing ‘channels’ distributors

Advertising

Bundles

For Amazon

List of charts/tables

Figure 1: Amazon Prime launch years and Prime Video Channels availability (in bold)

Figure 2: Amazon's net sales by country ($bn)

Figure 3: Number of Amazon Channels by country

Figure 4: SVOD penetration, UK adults, H1 2019

Figure 5: Average daily TV viewing time, 2010-2018 (2010=100)

Figure 6: Average monthly price of Amazon Channels by country

Figure 7: Average monthly price of Amazon Channels by country

Figure 8: Timeshifted share of broadcast TV viewing by channel

Figure 9: Amazon’s Channel Guide

Figure 10: Timeshifted share of ITV2 viewing and Hub+ subscribers

Figure 11: ITV Hub+ and DTC revenues, H1 2019 (£m)

Figure 12: Proportion of UK SVOD* households taking multiple services