In the world of content streaming, Netflix and Amazon Prime are two of the largest heavyweights in the arena. And a new look into both businesses by Invezz reveals that while Netflix may be winning in subscriber numbers, Amazon Prime has a leg up in revenue generation.
To gauge the top streaming service, one can look at market share, notably subscriber counts, and profit. As of July 2023, according to a Statista report by Julia Stoll, Amazon Prime surpassed Netflix in U.S. market share.
However, clarity on subscriber numbers remains ambiguous, particularly with Apple not updating its Apple TV+ subscriber figures since 2022.
But recent financial results have provided more data, the report notes.
Netflix reported 269.6 million global subscribers as of March 2024, with its shareholder letter stating nearly 270 million households worldwide subscribe. Meanwhile, Amazon Prime Video claimed over 200 million subscribers by April 2024, despite a 2% drop in its subscriber base last quarter.
Despite Netflix possibly reclaiming the lead in subscriber count from Amazon Prime since July 2023, the revenue battle tells a different story. Amazon's Q1 2024 earnings showed $10.48 billion from subscription services alone, surpassing Netflix's $9.37 billion in total net income for the same period.
Thus, while Netflix leads in subscriber numbers, Amazon Prime Video generates more revenue, a gap that may widen with its new ad initiatives.
Harsh Vardhan, Editor in Chief at Invezz, concluded: "In the battle for streaming supremacy, it’s clear that while Netflix may hold a slight edge in subscriber numbers, Amazon Prime Video’s dominance in revenue generation cannot be overlooked."
Vardhan said: "This financial muscle not only underscores Amazon’s robust growth strategy but also highlights its potential to innovate and expand its content offerings more aggressively. As the landscape continues to evolve, the true victor will be the one who can most effectively balance subscriber growth with sustainable profitability."
