Amazon (AMZN) – Get Amazon.com, Inc. Report Prime Video exists ostensibly to keep people subscribed to Amazon Prime. What started as a service based on free, unlimited two-day delivery has become a lot more than that because the retailer assumed (or knows) that customers may see free delivery as less of a prize as more options for that exist.
When Prime launched, it was something new, a service that offered real value for consumers. Now, Walmart (WMT) – Get Walmart Inc. Report offers free two-day shipping albeit for millions, not hundreds of millions.
Amazon has added all sorts of services to Prime as a way to keep customers from leaving, It’s not about whether you watch Prime Video or listen to music in Prime Music. Instead, it’s about the total package. Do you feel like you get enough value from Amazon Prime — whether that be shipping and video, or other things — so you don’t quit.
Amazon doesn’t do that because it makes money on Prime (it likely doesn’t). The retail giant wants you to be a Prime member so you shop more at Amazon.
That’s a self-perpetuating relationship. You pay for Prime so to get value from the service you buy more from Amazon. Now, Amazon has reportedly made a huge new hire to help Prime become even more valuable.
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Why Does Amazon Want NFL Games?
The National Football League (NFL) produces some of the most-watched programming that’s on television. People not only watch the national NFL games by the tens of millions — Sunday and Monday Night Football are usually the two most-watched shows each week — they also get watched in real-time.
That means the people watching actually see the commercials. That makes those ads worth more, a lot more, than commercials that air during even popular network programming.
Because of that, every network wants the NFL. You may not even make money airing football games, but Comcast’s (CMCSA) – Get Comcast Corporation Class A Report NBC can use its Sunday Night Football spotlight to promote its prime time lineup (Law & Orders plus a lot shows with “Chicago” in the title).