Retrieved 25 July 2020 Career Academy Amazon To C
Does Amazon have competitive advantages to compete effectively in the film/television production industry? Explain why or why not.
In essence, Amazon has some competitive advantages to compete effectively in the film/television production industry. Notably, one of its most effective strategies that have been implemented is the use of a streaming service known as Prime Video, whereby its subscribers will enjoy watching movies (Sherman, 2019). Specifically, one of the benefits that Amazon’s customers will get from this is that they will be able to access thousands of films at no additional costs. All they have to do is pay a certain subscription fee and become Amazon Prime members.
I believe that this advantage puts Amazon in a greater position than its competitors, Apple, and Netflix because of the large customer base it has. Instead of paying many subscriptions, Amazon has offered its customers a reasonable all-in-one package. All a customer has to do is to pay an annual membership subscription that will allow them to enjoy the benefits of being a member, shop online, and also streamline unlimited films through Prime Video. Consequently, the company will not struggle to make money through marketing, unlike Netflix and HBO, because this will be catered for by the million membership subscriptions on Prime Video.
Another competitive advantage that allows Amazon to compete in this industry effectively is through the establishment of Amazon Studios. Unlike other film companies, Amazon Studios intends to produce original content for its streaming platform, Prime Video. As discussed, these films can only be viewed if one has an Amazon Prime membership. Therefore, it means that these members enjoy the benefit of watching exclusive films releases before the rest of the public. I believe that this move has attracted more people to sign up for Amazon Prime to get this rare exclusivity without any additional costs, unlike its competitors.
Sherman, A. (2019). How the epic ‘Lord of the Rings’ deal explains Amazon’s slow-burning media strategy. CNBC. Retrieved 25 July 2020, from https://www.cnbc.com/2019/03/08/amazon-prime-video-feature.html.