During the latest quarter, Amazon added "millions" of subscribers to its Prime service, and an exec says its Netflix-like streaming video service is helping those numbers. October 24, 2013 3:10 PM PDT (Credit: James Martin/CNET) Amazon is Prime service garnered "millions" of new members in the latest quarter, and a top executive at the company said the Prime Instant Video helped usher them in. "We think it's certainly helping the Prime numbers, the Prime membership increases that you're seeing," Chief Financial Officer Thomas J. Szkutak said Thursday, referring to Prime Instant Video, during a conference call to discuss third-quarter earnings. Amazon typically keeps its disclosures about its various services close to the vest, and it hadn't previously tipped its hand on how many subscribers Prime was attracting quarter to quarter. "Very strong growth" was how Szkutak previously described the pace of Prime additions on Amazon's second-quarter call. Related stories Amazon reports $17.09 billion in sales for Q3, meets expectations Amazon's rumored set-top box may be delayed until next year Nokia goes big with Lumia phones, tablet Apple whiffs on iPad Mini price, choosing profits over share Amazon expands streaming deal with MGM, gets 'Fargo,' 'Platoon' Now we have a little better idea what tight-lipped Amazon means by very strong growth. External estimates from earlier in the year put Prime membership above 10 million members a year and a half after they had been speculated to be between 3 million and 5 million. That indicates Prime, which gives paying subscribers two-day shipping plus access to premium streaming video and some Kindle ebook borrowing, is gaining momentum as its video library gets deeper and the number of items that qualify for free, expedited shipping grows. Amazon's development of original series and licensing of hit shows like "Downtown Abbey" are meant to drive people to its Prime paid-subscription service, as well as sell Kindle devices. Szkutak said Thursday that Amazon is including its investing plans around video content -- both licensing and original -- in its outlook for the current quarter.
During the latest quarter, Amazon added "millions" of subscribers to its Prime service, and an exec says its Netflix-like streaming video service is helping those numbers.
(Credit: James Martin/CNET)
Amazon is Prime service garnered "millions" of new members in the latest quarter, and a top executive at the company said the Prime Instant Video helped usher them in.
"We think it's certainly helping the Prime numbers, the Prime membership increases that you're seeing," Chief Financial Officer Thomas J. Szkutak said Thursday, referring to Prime Instant Video, during a conference call to discuss third-quarter earnings.
Amazon typically keeps its disclosures about its various services close to the vest, and it hadn't previously tipped its hand on how many subscribers Prime was attracting quarter to quarter. "Very strong growth" was how Szkutak previously described the pace of Prime additions on Amazon's second-quarter call.
Related stories
- Amazon reports $17.09 billion in sales for Q3, meets expectations
- Amazon's rumored set-top box may be delayed until next year
- Nokia goes big with Lumia phones, tablet
- Apple whiffs on iPad Mini price, choosing profits over share
- Amazon expands streaming deal with MGM, gets 'Fargo,' 'Platoon'
Now we have a little better idea what tight-lipped Amazon means by very strong growth.
External estimates from earlier in the year put Prime membership above 10 million members a year and a half after they had been speculated to be between 3 million and 5 million.
That indicates Prime, which gives paying subscribers two-day shipping plus access to premium streaming video and some Kindle ebook borrowing, is gaining momentum as its video library gets deeper and the number of items that qualify for free, expedited shipping grows.
Amazon's development of original series and licensing of hit shows like "Downtown Abbey" are meant to drive people to its Prime paid-subscription service, as well as sell Kindle devices. Szkutak said Thursday that Amazon is including its investing plans around video content -- both licensing and original -- in its outlook for the current quarter.
