Tag: amazon prime

Amazon Business Model: How Amazon Generates Revenue
In recent years, Amazon has become a household name, whether it’s because of its unlimited options for selection, custom-made services, cheaper prices, customer services, or good quality search tool that helps in finding items of one’s choice. Amazon is a US-based multinational e-commerce company that focuses on e-commerce, digital streaming, artificial intelligence, and cloud computing. Amazon is now the world’s largest online retailer and has also been referred to as the world’s most valuable brand.

Amazon was founded by Jeff Bezos in 1994 and is headquartered in Seattle, Washington. The company started out as an online marketplace for books but went on to expand its market to selling electronics, music CDs and DVDs, tools, toys, software, video games, apparel, furniture, baby products, sporting goods, beauty products, clothing, and jewellery, among others.

Amazon is considered to be one of the big five companies in the US information technology industry, along with companies like Google, Facebook, Microsoft, and Apple. Amazon went on to surpass Walmart as the most valuable retailer in the US by market capitalization in 2015. Amazon Prime, had surpassed more than 200 million subscribers worldwide as of 2024.
The Business Model of Amazon

Amazon has a well-known diversified business model. According to the annual report as of 2024, the company recorded net sales of over $638.0 billion and a net profit of over $59.248 billion. Amazon’s business model is an Ecommerce model, but over the years, it has made acquisitions and created a portfolio of business models and revenue streams. However, the biggest proportion of sales, which is fifty percent, came from their online marketplace.

The rest comes from the physical stores, Amazon AWS, subscription services to their apps, third-party seller services, and lastly, advertising revenues. Amazon Prime, which is a subscription-based service, plays an important role in the business model, as it gets the company more loyal customers who are willing to spend more for their services. Amazon also has a cloud infrastructure called AWS, which yields high margins. Besides that, Amazon also has an advertising business, which is worth billions of dollars.

The Amazon Business Model Canvas

Amazon measures its success based on lower prices, reliable tech infrastructure, free cash flow generation, and customer experience obsession. The company’s service sales have been growing at a fast pace, helping the company to expand globally. Amazon had attracted over 3.25 billion visits in June 2024 worldwide, while people spend more than six minutes on the site looking at a minimum of nine pages in order to find what they are searching for.

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How Does Amazon Work?

Amazon runs a platform business model as the core with many other business units within the core model. Some units, such as Prime and the advertising business, are heavily linked to e-commerce platforms. For example, Prime helps reward Amazon customers, thus growing its platform business. Other units, such as AWS, helped improve Amazon’s technical infrastructure. Amazon sells a variety of its own products on the platform but also allows third-party sellers to sell to customers.

Here are some key milestones of Amazon:
1. 1995 – Amazon launched as an online bookstore.
2. 1997 – Became a publicly traded company.
3. 2005 – Launched Amazon Prime, offering fast delivery and other benefits.
4. 2006 – Introduced Amazon Web Services (AWS), now a leading cloud platform.
5. 2012 – Acquired Kiva Systems to automate warehouse operations.
6. 2015 – Celebrated 20 years with the first Prime Day sale.
7. 2018 – Reached $1 trillion in market valuation.
8. 2020 – Saw massive growth during the COVID-19 pandemic.
9. 2021 – Founder Jeff Bezos stepped down as CEO; Andy Jassy took over.
What Does Amazon Sell?

Currently, the platform offers products and services such as Amazon Prime Video, Amazon Music, Appstore for Android, Echo and Alexa, Fire tablets and TVs, Kindle e-readers and books, merchant products and seller products. Amazon’s target audience is customers who buy products and subscribe to its services. So vendors sell their products on the platform, and developers are focusing on using AWS technology for infrastructure, digital products, and services.

Revenue and services of Amazon

Key Elements of Model
- Consumers – Amazon has great customer service and makes sure that they serve their consumers through their online websites. The company focuses on selection, convenience, and price. The Amazon website is designed in such a way that customers can browse through dozens of product categories and access them conveniently on various gadgets. The company strives to offer its customers the lowest prices through everyday product pricing and shipping offers.
- Sellers –Amazon gives sellers the opportunity to grow their business, sell their products on websites, and fulfill orders through us. Amazon earns fixed fees, a percentage of sales, per-unit activity fees, interest, or some combination thereof for the seller’s programs.
- Developers and Enterprises – Amazon serves developers and enterprises of all sizes, which includes startups, academic institutions, and government agencies through their AWS segment, which promises to offer a broad set of global computing, storage, database, and other services.
- Content creators – Amazon also helps authors and independent publishers with Kindle Direct Publishing, an online service that allows independent authors and publishers to choose a 70% royalty option and make their books available in the Kindle Store. They also offer programs that will allow musicians, filmmakers, app developers, and authors to publish and sell their content.
- Amazon Advertising – Amazon Advertising provides sponsored ads and video options, making it a highly effective marketing channel, as users on the platform already have strong purchase intent.
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Amazon Revenue Model

With a market capitalization of $1.92 trillion as of April 2025, Amazon is currently one of the most valuable retailer in the world. Amazon’s online stores bring in high margins, while other parts of the Amazon business model, such as Amazon Advertising Services, Amazon Prime and Amazon AWS, run with much higher margins.

Thus, Amazon’s online stores are the foundation for other businesses that make the overall company more profitable in the long run. An important day for online sales is Prime Day, which has turned into a major shopping event comparable to Black Friday and Cyber Monday.

In 2024 Amazon Prime day generated over $14.20 billion which is a record high. The third-party seller is the company’s second-largest unit in terms of net sales. A key factor in the company’s success is its diversification into other areas.

How Amazon Makes Money

The revenue model of Amazon is primarily based on the commissions and fees it receives for matching borrowers and sellers. Amazon provides a marketplace that provides a standardized experience for both buyers and sellers. Amazon also derives a large portion of its revenue from affiliate programs in order to receive a large commission on their sales. The company also sells advertising space on its website so that vendors can increase their sales by advertising on the site. Amazon also makes a lot of money from the Kindle marketplace.

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Amazon Revenue Streams
- Online stores – Includes product sales and digital media content where we record gross revenue. Amazon leverages our retail infrastructure to offer a wide selection of consumable and durable goods that include media products available in both physical and digital formats, such as books, videos, games, music, and software. Digital product subscriptions that provide unlimited viewing or usage rights are included in the Subscription Services.
- Physical stores – This includes product sales where our customers physically select items in a store. Online stores include sales to customers who order goods online for delivery or pick up from our physical stores.
- Third-party seller services – The Company receives a substantial portion of its revenue from third-party sellers, from commissions and any related fulfilment and shipping fees and other third-party seller services.
- Subscriptions – Amazon Prime membership comes with an annual and monthly fee. Amazon also offers subscription services for audiobooks, digital video services, digital music, eBooks, and other non-AWS services. Amazon’s standard Prime membership rate is $139 a year, which would translate into more than $25.21 billion in revenue, though the company offers discounted memberships for students and others.
- AWS – AWS includes global sales of computing, storage, database and other services.
- Other services – These include sales of advertising and marketing services.
List of Amazon Failed Products and Services | Amazon Failures

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The Value Proposition of Amazon

The value proposition provided by Amazon is actually quite simple: they offer the most convenient and widest range of products and services for the lowest prices. The prices of its products and services are so low that they have managed to displace Walmart, making the company the leader in the price category. While the goods and services are at the lowest prices, the quality of the products is not compromised in any way.

Amazon takes advantage of technology to get the lowest prices possible so that it doesn’t have to stock any kind of inventory. While other stores are burdened with spending money on stocking inventory, Amazon can cut out the competition on this one. It is a mix of a retail company and a technology company. Unlike retail companies, Amazon rarely hires stock clerks and floor managers and keeps employees with high technical skills.

Conclusion

Amazon is the face of the current market – global, digital, and ever-growing. It is a rapidly productive brand, adapting quickly to new demands in a fast, effective, and original way. For this reason, for now, even though it faces competition individually on all fronts, its corporate umbrella remains unique and, hence, should stay ahead in the coming years.

FAQ

When and by whom Amazon was founded?

Amazon was founded by Jeff Bezos in 1994.

How many business models does Amazon have?

Amazon has five main business models, an eCommerce, a Cloud Platform with AWS, runs subscriptions with Prime, third-party sellers and it also produces hardware products such as voice assistant, Alexa, the ebook reader Kindle, and more.

What business model does Amazon use?

Amazon uses a hybrid model: it sells products, lets others sell on its site, offers subscriptions like Prime, runs cloud services (AWS), earns from ads, and provides logistics and devices like Alexa.

Is Amazon a B2B or B2C?

Amazon is both a B2B and B2C company.

What is Amazon business model in India?

In India, Amazon follows a marketplace model, connecting buyers and sellers, offers Prime subscriptions, earns from ads, and provides logistics through Amazon Transportation and Fulfillment services.
April 11, 2025
The Ultimate List of Amazon Failed Products and Services
Naturally, one of the world’s largest and most influential firms would prefer to sweep any rare mistakes and misfires under the rug and claim they never occurred.

Amazon originally started when founder Jeff Bezos began selling ebooks from his basement in Washington. It is presently the world’s largest online marketplace. So, you can understand Jeff’s desire to focus on his company’s incredible triumph rather than explaining the occasional failure.

Jeff’s failings are treated with refreshing candor. He’s more than willing to discuss how he lost billions on failed business projects. It’s all part of his vast master plan, and he doesn’t think it’s a big deal to take large chances that sometimes backfire. And, as the firm expands, everything has to double, including the magnitude of your unsuccessful trials, according to him. You won’t be created at a scale that will genuinely shift the dial if the size of your flops doesn’t expand.

That’s great news since Amazon has had its fine dose of flops, turkeys, and wrecks over the years. But it’s nice to know that none of them is causing Jeff any sleepless nights. So, let’s look at Amazon failures with a list of failed products:
Amazon Fire Phone

Amazon Failed Products – Amazon Fire Phone

With the launching of a new smartphone, you’d expect that a firm like Amazon would be on relatively safe ground, given its popularity with Kindle gadgets, tablets, and streaming devices. This Fire phone seems to be the natural next step amid a flurry of marketing hoopla in 2014.

The new device is described by Jeff as “beautiful, elegant, and sophisticated.” The device’s four front cameras worked in tandem to offer a broader view, which was one of the phone’s best features. This effectively meant that the parallax effect was applied to your pics, giving them depth and a wonderful 3d feel.

So you could flaunt your plate of spaghetti bolognese at that hip new eatery. A similar approach might be used for Amazon products, enabling you to simulate that dazzling green mankini in spectacular 3d before making a purchase. Initially offered for $200 with a two-year contract. Sadly, it took several months for the rate to drop drastically to $0.99 cents, and Amazon still could transfer them.

Despite this, Amazon did not discreetly halt production, given the fact that the fire phone had shed 170 million dollars. So, what’s the issue? Well, Amazon stunned the industry by charging top-tier pricing for Kindle tablets and Fire TV. Amazon had built an image for offering top quality at cheap rates. Not only was it good, but it was also cost-effective.

The Fire phone’s upscale costs implied something was spectacular about Amazon’s new device, but there wasn’t; it looks tacky and a little unpleasant. Technically, the 3D stuff was great, but it was essentially a ploy. Amazon had arrived far too late to the game with an overpriced item that didn’t offer anything novel or beneficial, making Amazon Fire Phone one of the biggest failures of the company.

This time, there wasn’t such a blazing fire. It’s more of a smoldering ember.

Pets.com

Amazon Failed Products – Pets.com

Over the course of the year, Amazon has made several really smart investments, as well as a few bad ones. They poured money into the disastrous pets.com’s initial round of fundraising in 1999, yet only own 54% of the company. Simultaneously, the CEO of pets.com, Julie Wainwright, defined the corporate partnership as “a match made in heaven.” When the dot com bubble burst a year later in 2000, pets.com became the most well-known victim.

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Kozmo.com

In the same year, Amazon put nearly $60 million into kozmo.com, a promising internet endeavor. Free one-hour shipping of DVDs, games, and books was made available via bicycle, van, and, most likely, skateboard.

Business insiders cautioned from the outset that the free shipping model would never be economically feasible for the firm, and it appears that they were true, as Kozmo did ultimately try to charge shipping costs, but it was too late to cancel the firm from going bankrupt, taking Amazon’s $60 million worth with it.

Askville

Amazon Failed Products – Askville by Amazon

In 2006, Amazon released Askville.com, which was one of the oddest Amazon products. Perhaps the loss of the Kozmo hasn’t been thoroughly learned. This was a fresh collaboration with Kozmo co-founder Joseph Park, who had come up with a novel plan for a user-driven Q&A portal where users could pose and reply to pressing topics of the day.

The notion wasn’t entirely awful, and it’s a model that later evolved into flourishing groups on sites like Quora. However, the Askville method was a little cringe-worthy, as it assumed that the portal needed to be more than just faqs to retain users. They devised a fun gamification concept in which players win or lose XP points based on the merit of their responses. Players were also urged to acquire quest gold, which could be traded for Gift vouchers or Askville shop items.

Finally, the overly convoluted concept fizzled out, leaving the comment sections essentially blank and meaningless. “Why does Amazon continue sponsoring askville.com?” was one of the last comments made on the site before the forums were permanently shut.

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Amazon Kindle on iPhone

Say you’re using the Kindle app on your Android, and you’re in the middle of an Amazon-Apple verbal battle. You peruse a list of intriguing books. You finally make up your mind about which book you’ll read soon. You press the large, cheery buy now button, and the book is quickly installed on your phone. It’s that easy. That’s how apps were designed to work.

Now, imagine you’re on your iPhone, surfing the Kindle app. You peruse a list of enticing books. You finally decide which book to read next. You press the huge cheery buy now button and are forced to halt since you are unable to proceed. There’s no button because, in a bizarre twist of fate, you can’t buy books inside the iPhone version of the Kindle app.

The issue began when Apple demanded a 30% cut of all orders placed through its apps. Amazon was not pleased with this because they also required a part in writer earnings from each eBook sale, and paying Apple a 30% cut wasn’t gonna work. Sadly, the two business behemoths were unable to strike a deal.

Amazon attempted to avoid the app toll by embedding URLs to the Kindle app in their web-based Kindle store, ensuring that eBook purchases were not made inside the app.

When Apple tightened the regulations even more and disallowed external buy URLs, iPhone owners were put in the perplexing scenario of having to navigate and leave the app, seek the web edition of the shop, buy books, and then return to the app. On your iPhone, you can use the Amazon Kindle, which is insanely difficult and completely ludicrous.

However, given that the Kindle app was created to be a medium for acquiring and reading, the iPhone edition is among Amazon’s lengthiest flops, failing to meet half of its purpose.

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Amazon Destinations

Amazon Failed Products – Amazon Destinations

Well, here is a brief live experience on Amazon. There was a high chance of victory, but he was yanked so swiftly that they’d just lost out if he blinked. Amazon Destination was the firm’s foray into the hotel reservation business, enabling weekend breaks and utopian escapes at regularly quoted costs.

Their hotel partners were ecstatic with the latest arrangement, noting a spike in traffic and reservations after using Amazon’s novel tool. The pricing wasn’t precisely bargained, but the notion was that Amazon’s massive internet persona might help place regular hotel ads in front of a far wider public than ever.

Widely expected to be a big leader in the OTA business, Amazon appeared to be on the correct path with this latest product but then abruptly disappeared from the web a few months later, like it took a tragic trip into the Bermuda Triangle.

Nobody knows why Amazon has been unusually quiet on the topic. We can surmise that Amazon’s new business was harmed by the rising presence of other key OTAs like Expedia. Some corporate analysts claim that a highly effective operator must devote their entire attention to the offering rather than being one of several other goods offered by the firm.

We’ll never know why Amazon destinations tend to drop so soon because Amazon hasn’t disclosed the numbers from this failed idea. One should probably post a query on Askville.com.

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Amazon Local

Amazon Failed Products – Amazon Local

In 2011, Amazon developed a portal for localized discounts. The design was identical to Groupon and LivingSocial, both of which have struggled. Amazon stated in October that Amazon Local would close down on December 18th, 2015. It is one of the most disastrous failed Amazon products, highlighting the challenges companies may face when introducing new innovations to the market.

Amazon Wallet

Amazon shut down its digital wallet just six months after it was released in the spring of 2015. Users could save vouchers and loyalty cards on their phones to pay for in-store and e-shopping, but credit/ debit cards were not supported. Amazon still accepts electronic purchases through Pay with Amazon, but unlike Apple and Google, it doesn’t offer a user-facing wallet. This closure marked one of the notable failed Amazon products in the company’s history.

Amazon Local Register

Amazon Failed Products – Amazon Local Register

Local Register was a new effort to assist local shops in accepting payments via a smart card processing system. It was similar to Square’s and PayPal‘s, but it never gained traction, and Amazon announced in February 2016 that it would be discontinued.

TestDrive

Amazon Failed Products – Amazon Test Drive

This service was launched in 2011 and allows customers to try new apps before acquiring them from the Amazon App. The initiative was shuttered by Amazon in April, claiming a drop in demand and the recent surge of the “free to play” biz paradigm. This move marked one of the instances where Amazon fails to sustain a service due to shifting market trends and customer preferences.

Music Importer

Amazon Failed Products – Amazon Music Importer

In 2012, Amazon introduced the Music Importer, which allowed customers to import any tracks they’ve saved to their PC and build an online collection. However, Amazon then developed Prime Music, a similar-to-Spotify-and-Pandora-style streaming site that rendered Music Importer outdated. In October, Amazon notified the end of Music Importer.

Crucible

Amazon Failed Products – Crucible

Crucible was a free-to-play team-based shooter game developed and published by Amazon Game Studios. It was officially launched on May 20, 2020. It was Amazon’s first major original title published by their gaming division, which had previously focused on tablet games.

Several factors contributed to the failure of Crucible. Firstly, the game faced criticism for its lack of originality and failure to stand out in the competitive online gaming market. The gameplay mechanics were not well-received, and the game struggled to find its target audience. Additionally, technical issues and a lack of polish further hindered the player experience. The decision to revert the game to closed beta shortly after its initial release and ultimately discontinue it in November 2020 indicated that Amazon acknowledged the challenges and limitations of Crucible and chose to shift its focus elsewhere in the gaming industry.

Amazon Spark

Amazon Failed Products – Amazon Spark

Amazon Spark was a feature within the Amazon mobile app that allowed users to discover and shop for products through photos shared by other users. It was essentially a social shopping platform where customers could post pictures, write reviews, and engage with others in a social feed. It was launched in 2017 to replicate the influencer-driven social commerce experience of platforms like Instagram and Pinterest.

Spark failed to gain significant traction and was eventually shut down in 2019 due to a combination of factors: lack of authenticity, poor integration, limited reach, inadequate moderation, and a changing social media landscape. Amazon’s attempt to create a social media platform specifically for Prime members fell short due to its inauthenticity, poor integration with the overall Amazon shopping experience, limited reach to non-Prime members, ineffective moderation, and the rise of short-form video platforms that shifted user attention away from static image-based social commerce.

Amazon Restaurants

Amazon Failed Products – Amazon Restaurants

Amazon Restaurants was a food delivery service offered by Amazon. It allowed customers to order food from local restaurants through the Amazon website or mobile app, and the service would facilitate the delivery. It was launched in 2015 in Seattle and gradually expanded to other cities in the United States and internationally. The service aimed to leverage Amazon’s vast logistics network and customer base to compete with other popular food delivery platforms.

Amazon Restaurants ceased operations in the United States in June 2019. The decision to shut down the service was attributed to intense competition in the food delivery industry, where other established players like Uber Eats, DoorDash, and Grubhub dominated the market with a 75% share of the US online delivery market. Amazon did offer free delivery to Prime members and a selection of 200 dining establishments, but this was not enough of a competitive advantage. Amazon likely found it challenging to capture a significant market share and achieve sustainable profitability in the face of such competition.

Amazon WebPay

Amazon WebPay was a free-to-use online payment service launched by Amazon in 2007. It allowed users to send and receive money from friends and family, pay bills, and make online purchases. WebPay was designed to compete with other online payment services such as PayPal and Google Checkout. Amazon invested an estimated $10 million in WebPay in its first year of operation. The company hoped the service would attract new customers to its website and increase its share of the online payment market.

Despite Amazon’s backing, Amazon WebPay failed to gain traction in the competitive online payment market. The service’s high fees, limited features, poor marketing, and inability to keep up with the evolving industry landscape all contributed to its downfall. It failed to address customers’ requirements better than other services. In 2014, Amazon announced the closure of WebPay, acknowledging the challenges of competing in a crowded market and the importance of differentiation.

Amazon Dash Button

Amazon Failed Products – Amazon Dash Button

Amazon Dash Button was a physical, Wi-Fi-enabled device launched in March 2015 that allowed users to reorder specific products with the push of a button. Each button was associated with a particular product, such as laundry detergent or pet food. When pressed, the Dash Button would order that specific item through the user’s Amazon account.

Numerous issues resulted in the discontinuance of the Amazon Dash Buttons. Vice President of Amazon Daniel Rausch agreed that the idea of physical buttons for reordering was a terrific first step toward the linked home but that having more than 500 buttons for different things created an enormous obstacle. The physical buttons became redundant when the Amazon Prime app introduced Virtual Dash buttons as a more convenient option. Appliance manufacturers incorporated automated replenishment systems through the Dash Replenishment Service, which removed the requirement for manual ordering. The final factor contributing to Dash Buttons’ demise was Amazon’s Subscribe and Save program, which offered discounted recurring monthly deliveries. Consequently, in February 2019, Amazon formally terminated the Dash Button program.

Amazon Tap

Amazon Failed Products – Amazon Tap

Amazon Tap, launched in 2016, was a portable Bluetooth speaker with Alexa, requiring a tap to activate. Despite standard features like Wi-Fi and USB charging, it failed to gain popularity due to the lack of hands-free voice activation. Competing in a tough Bluetooth speaker market, users preferred other options for better sound quality. By 2018, Amazon discontinued the Tap, focusing instead on its successful “Alexa Everywhere” strategy, expanding Alexa beyond speakers. Meanwhile, the Echo Dot thrived, becoming Amazon’s best-selling product in 2019, while the Tap never saw a second generation.

Amazon Cloud Player

Amazon Failed Products – Amazon Cloud Player

Amazon Music Importer, launched in 2012, let users upload and stream music from the Amazon Cloud Player with 5GB of free storage. However, by 2015, streaming services like Spotify and Apple Music had taken over, reducing the need for MP3 collections. Amazon shut down Music Importer as users shifted to streaming, and its features were already integrated into the Amazon Music app, making it redundant.

Conclusion

The real kicker is that Amazon is indeed bracing for more setbacks ahead. Jeff seemed to like the prospect of losing large sums. “If you feel that’s a significant failure, we’re planning on even greater setbacks presently, and I’m not joking,” he said when questioned about the Fire phone screwup.

In the latest shareholder letter, Jeff mentioned that if Amazon periodically experiences mega-dollar fails, the company will explore the ideal scale for a firm of its size, emphasizing the need to learn from and navigate through any Amazon fails. Of course, such tests will not be undertaken lightly. We’ll try to place smart bets, but not all will pay off. Amazon product failures highlight how even major companies can struggle with innovation, as some products fail to meet user expectations or adapt to market changes.

I’m excited to see what incredibly amazing Amazon failures the company encounters in the next few years, as it will provide me with more content to blog about and analyze.

That’s all, folks, for today.

FAQs

What failures did Amazon endure?

Amazon Fire Phone, Pets.com, Askville, and Amazon Destinations are some of the biggest product failures of Amazon.

What year was Amazon founded?

Jeff Bezos founded Amazon in 1994.

Who is the owner of Amazon?

Jeff Bezos is the founder and former CEO of Amazon; he founded Amazon in 1994.

What is Jeff Bezos’s response to the failure of products?

Jeff Bezos responded that they are bracing for more setbacks ahead when questioned about the Fire phone screwup.

What are Amazon CEO notable failures?

Amazon CEOs have faced notable failures, including the Fire Phone, which failed due to poor sales, and the Amazon Tap, which lacked hands-free voice activation. Other missteps include the shutdown of Amazon Restaurants and the discontinuation of Dash Buttons, showing that even tech giants face challenges in innovation.

Why did Amazon Fire Phone fail?

One of the reasons Amazon Fire Phone failed is Amazon arrived far too late to the game with an overpriced item that didn’t offer anything novel or beneficial.
March 21, 2025
Amazon Prime Business Model | How Amazon Prime Makes Money
Amazon Prime is a subscription plan meant to make life easier for customers and to earn loyalty through the numerous benefits it has. One of which is shipping fast in just about any way possible, including the same day with Prime Now. This also brings a huge selection of other features, from movies and television shows to music and eBooks. Prime is designed on income from the subscription costs covering logistics, content acquiring, more spending, and hence loyalty-enhancing structures for the customers.

This fast delivery, exclusive positioning, and premium content are its value service and make it an integral part of the daily lives of its users. They have toil at the last inch so that both logistics and content play the right chords, along with customer service, partnerships for content creation, as well as for delivery providers and tech developers.

That provides end-to-end services to Amazon Private-Label Brands. Prime strengthens its benefits, ensuring customer loyalty and competition in e-commerce and digital services. Its impact is also on B2B businesses, such as Amazon.

About Amazon Prime
Amazon Prime Business Model
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About Amazon Prime

Amazon Prime became available in February 2005 for Amazon’s clients as a special membership program that was priced only at $79 per year, the package came with many services one of them being free shipping related to more than a million items that shipped in two days, hence they included Amazon’s focus on client retention and convenience.

In 2006, there was the introduction of Fulfillment by Amazon (FBA) whereby sellers were given the chance to use Amazon’s warehouses to store and ship their products thus allowing them to offer Prime shipping. Prime Video was launched in 2011, while in 2014, the price to subscribe increased to $99 and one of the new benefits was the self-explanatory features called Lightning Deals.

This happened in 2015 and was called Prime Day also known as a 24-hour exclusive shopping time. The following year in 2016, Prime was launched in India, and same-day delivery was implemented along with Prime Reading. Amazon paid $13.7 billion in cash for Whole Foods and in the same year, Amazon introduced the Prime Rewards Visa. The cost of the subscription was $119 in 2018, the same year that the Prime service can also be enjoyed in Australia.

Bolstered by a successful launch in China and the United States, the Prime program is now offered in more than 200 countries and territories, which includes shipping, digital media, and special deals.

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Amazon Prime Business Model

Amazon Prime, therefore, operates through membership; faster customer access, and user loyalty to keep the initiative competitive within the world stage of e-commerce and digital services operation. It exists exclusively based on subscription, through which there comes all the facilities- things like quick shipping, early access to deals, lots of streaming of films and TV, and music and eBooks. Hence, it happens that everything has to be fluidly related to any purchase-related benefits.

This can happen, for example, through personal recommendations shopping via Prime, and even more with some easy-going return policies. Amazon finances its marketplace through its global activities rather than through revenues generated by advertising specific commercial or other initiatives within the platform.

Amazon Prime, because it opens up a network that is potentially very broad, must also take care of logistics and acquire and make digital content continuously updating and maintaining a sharp, smooth functioning platform. It works with content creators, delivering bodies, and tech companies that focus on making all that possible and better. Aimed at busy and professional employees with families, technology-driven young consumers, and also those truly passionate about entertainment, Amazon Prime represents the paradigm of a successful membership model that increases long-lasting customer relations while driving growth.

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How Amazon Prime Makes Money | Revenue Model of Amazon Prime

Amazon Prime’s financial structure is complex and is based on several pillars, the major one being membership subscription services. Boasting more than 200 million members globally, annual and monthly subscriptions contribute to recurring revenue that feeds Amazon’s supply chain and allows them to buy more video and audio content for Amazon Prime Video and Music. Also, it is noted that members will often spend more due to the ease of shopping and the attractive discounts that can be available to them. This has a significant impact on the growth of Amazon’s revenue across all sectors.

In addition to subscription fees, there is a lot of revenue coming from Amazon’s targeted advertisement revenue feature. This is achieved by developing new devices and searching for the right customers on the vast information provided by consumers, starting from the contents of sponsored products to experimenting with ads. Moreover, Prime Videos earns through fees from streaming, video on demand or other services, rentals, sales of CDs, or other forms of packaging of programs or movies.

Special promotions such as Prime Day result in revenue and further help in the increase of sales making Amazon a primary retailer online. Amazon Prime constantly introduces new products and services, which helps to avoid one of the most common business challenges in the corporate world; creating a loyal client base without given that such a business model fosters profit progression.

Amazon Prime 10-year Revenue Data

2014 2.76

2015 4.47

2016 6.39

2017 9.72

2018 14.17

2019 19.21

2020 25.21

2021 31.77

2022 35.22

2023 40.2

2024 ( Q3) 32.87

Amazon Prime 10-year Revenue Data

Amazon Prime Unique Selling Proposition

Amazon’s Unique Selling Proposition (USP) is concentrated on totally convenient and seamless customer experience. Definitely one of the leaders in logistics, Amazon enables Prime members to enjoy extremely fast shipping with free same-day delivery. A massive selection of items allows Amazon to become the only-stop shop, along with digital content such as movies, television shows, music, and eBooks. Artificial intelligence recommends personalized purchases while competitive prices, easy returns, and prompt customer service ensure high satisfaction.

Amazon differentiates itself by its commitment to innovation, in turn, building the strongest loyalty bond with customers. Together with website excitement and exclusive promotions with Prime Day, Alexa provides convenience, integrating smart home capabilities to add to the initiative. Apart from that, services like Amazon Fresh and Whole Foods keep the brand alive in the daily needs market and reinforce its position in e-commerce with a very robust integrated approach.

Amazon Prime SWOT Analysis

Strengths
- Market Leadership: Amazon is arguably one of the biggest global players in the e-commerce industry, offering a selection of products and services across borders.
- Amazon Web Services(AWS):With AWS being considered a leading cloud computing platform, it is among the major sources of revenue for Amazon with tremendous growth potential.
- Customer-Centric Innovations: Products of innovation focus on customer experience such as one-click ordering, voice shopping using Alexa, and personalized recommendations.
- Reliable Logistics Network: The expanse of Amazon’s supply chain and logistics infrastructure put in place facilitates rapid and reliable delivery services.
- Brand Loyalty through Amazon Prime: With more than 200 million members globally, Prime builds loyal customers through exclusive offers and services.
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Weaknesses
- Hiring and Operational Costs: Keeping an enormous warehouse and delivery network running incurs enormous operational costs.
- Labor and Vendor Quality Issues: Labor conditions raise issues; hence the control of quality assurance and customer satisfaction take a hit due to dependency on third-party sellers.
- Financial and Security Risks: Their dependence on AWS for profits casts a shadow over low e-commerce margins, whereas threats from data security incidents put them at risk in the eyes of cybersecurity.
Opportunities
- AWS Expansion: Cloud services’ upping demand gives opportunities to better AWS capabilities and widen its client base.
- International Growth: Forays into developing markets like India, Southeast Asia, and Africa will also give a fillip to the business growth.
- Tech Innovation: Investing in AI, automation, and machine learning could enhance customer experience and operational efficiency.
- Diversification & Sustainability: Venturing into healthcare and fintech with environmentally conscious initiatives will thereby boost Amazon’s brand and market stance.
Threats
- Market and Regulatory Challenges: Intense competition from both global and local e-commerce players, compounded with scrutiny over antitrust cases and concerns regarding data privacy, create significant barriers to entry.
- Operational Costs and Labor Costs: Rising labor demands and disruptions in the global supply chain increase costs and affect efficiency.
- Cybersecurity Threats: Data breaches and system failures are damaging Amazon’s reputation and threatening its financial stability.
As one of the business models of Amazon, Amazon Prime is thus the means through which customer loyalty is achieved through the easiness of convenience and the bundling of value-added services. A subscription service that bundles fast delivery and streaming of entertainment with exclusive deals, etc., creates an engaging ecosystem and translates into more customer spending. Customer satisfaction is the focus of Prime as it facilitates convenience, value for money, and entertainment; thus, creating long-term customer loyalty.

The main revenue streams originating from subscription fees largely redirect consumer buying behavior and grow the presence of Amazon in the marketplace. More than 20 countries have Prime, but each country’s offering is tailored to meet local needs while also being substantiated with the continual adding of digital benefits, such as video gaming and grocery delivery. By meticulous integration of services, Amazon has effectively secured a strong customer moat for the growth of the business with competitive advantage in fast-changing markets.

The Business And Revenue Model Of Amazon

Amazon is expected to generate $491 bn from Ecommerce by 2027 whereas its AWS could hit $100 bn in 2023. Here’s complete information about Amazon’s Business Model.

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FAQs

What is Amazon Prime?

Amazon Prime is a subscription-based service that offers a variety of benefits to its members, including fast shipping, streaming entertainment, and exclusive deals.

How does Amazon Prime make money?

Primarily through recurring subscription fees paid by members.

How does Prime increase sales for Amazon?

Prime members tend to shop more frequently and spend more money on Amazon due to the convenience of free and fast shipping, as well as exclusive deals.
March 11, 2025

2014	2.76
2015	4.47
2016	6.39
2017	9.72
2018	14.17
2019	19.21
2020	25.21
2021	31.77
2022	35.22
2023	40.2
2024 ( Q3)	32.87

Netflix vs Amazon Prime Video: Which one is Better?

The entertainment industry has evolved drastically over the last few years owing to the streaming websites, with growing choices for accessing content online. Digital media has made its way through a remarkable evolution over the last few decades. New platforms and streaming sites have emerged that allow movie/series lovers to watch video content over the Internet.

The growth of online streaming changed the multimedia and entertainment ecosystem. Several names come to mind when talking about online streaming but no one can beat Netflix and Amazon Prime Video. These are one of the widely used video streaming services and people’s favorite choice.

With online Streaming sites coming into a discussion, the inevitable question of which of them is the best also comes into the picture. There is a multitude of content to watch on the Internet depending on the taste of the viewers.

Overview of Netflix and Amazon Prime Video
Netflix vs Amazon Prime
Netflix vs Amazon Prime: Comparison of Content
Which one has better Plans?
Is Netflix better than Amazon Prime?

Difference between Amazon Prime and Netflix — Netflix Vs Amazon Prime

Overview of Netflix and Amazon Prime Video

Netflix is an online streaming video-on-demand subscription service which provides its viewers to access to a massive list of movies and TV shows from around the world for a nominal monthly or annual fee.

It was founded by Reed Hastings and Marc Randolph, the entertainment company has grown from a DVD mail-order service to a global Internet TV sensation. Netflix has undergone several ups and downs since its inception in 1997 but evolved dramatically over the years to become the global leader of mainstream media. It’s the most common digital name today.

Amazon Prime Video is a digital subscription-based video-on-demand streaming service owned and operated by Amazon that offers a myriad of movies, TV shows, documentaries, comedy specials, and so on. It costs INR 999 a year which allows viewers to enjoy unlimited video streaming and ad-free music on the top of Amazon-exclusive deals plus free two-day shipping after a 30-day free trial.

Netflix vs Amazon Prime

Netflix	Amazon Prime video
Netflix broadcasts 4k and HDR content and it excels in video and sound quality making it stand out	Amazon Prime Video fails to play high-resolution HD content on low-speed connection
You can only stream movies or TV series on it	You can get other benefits such as Amazon Prime Music and faster Amazon delivery
Netflix supports wide range of devices including gaming consoles	Amazon Prime does not support Gaming consoles
Netflix has extensive library of titles including several renowned in-house documentaries as well as series	The library and content of Amazon Prime isn’t as extensive as compared to Netflix
Netflix is more expensive. In India, Netflix’s mobile plan starts at INR 199 and goes upto INR 799 per month	Prime is cheaper than Netflix. Users are charged INR 999 annually and INR 129 monthly for Prime
Just 897 Netflix movies are not rated	31,066 of Amazon Prime’s movies are not Rated, which means the movies are too old for rating or are too small to go through the rating process
Netflix provides limited downloads to the user	Amazon Prime Vidoe does not limit the user for the video downloads

Netflix vs Amazon Prime: Comparison of Content

It’s always about good content. Both Netflix and Amazon Prime Video have more than their fair share of amazing content. In Netflix’s case is House of Cards, Narcos, Orange Is the New Black, The Crown, BoJack Horseman, and Daredevil, to name just a few of its Originals.

On Amazon Prime, you got Bosch, The Man in the High Castle, Transparent, Mr. Robot, Hand of God, American Gods, Sneaky Pete, and many more. A particular show in mind will push the viewer towards a particular site.

When it comes to movies, Netflix caters an evolving catalogue of classics, relatively new movies, and some exclusive indie films. Amazon Prime Video also offers up a similar catalogue but it’s more focused on TV shows than films. Note that Prime Video also requires you to pay to watch some films despite having a Prime membership.

The total amount of TV shows and films available on both services continuously gets updated and evolve from time to time.

Which one has better Plans?

For a college student with a valid .edu address, one can pay just INR 499 per year for Amazon Prime. Everyone else has to pay INR 129 per month for Amazon Prime. Prime customers can use up to 3 screens at a time.

Netflix charges INR 199 – INR 499 per month for one screen option, INR 649 month for two screens plus HD access, and INR 799 month for 4 screens plus Ultra HD access.

Amazon Prime is a bundled service. Apart from Prime Video, you also get a host of other benefits like free two-day shipping on Amazon India website, early access to Amazon sales and deals, and more. Netflix is a pure video-streaming platform.

Not just video streaming, Prime also offers music streaming services with its Prime Music. It has a music library across 12 languages – English, Hindi, Punjabi, Tamil, Telugu, Marathi, Bengali, Malayalam, Kannada, Bhojpuri, Gujarati, and Rajasthani.

Amazon does not charge you extra for the 1080p Full HD and 4K Ultra HD resolutions on any of its plans, whereas on Netflix you have to pay for 1080p and 4K Ultra HD video quality for INR 499 monthly plan. Also, Amazon lets you stream videos on three different devices simultaneously. With Netflix, you have to pay INR 649 if you want to stream it on four devices simultaneously.

Since Prime Video also comes with free 2-day shipping for all Amazon products and sweet deals on subscription services, Amazon is the winner in this category.

Is Netflix better than Amazon Prime?

Shows offered by both the platforms offer very competitive content. Which makes it even harder to decide on which one is the best.

Over time, the meaning of the phrase “Netflix and chill” has evolved. It has gained popularity on the internet and users are actually using Netflix more to chill and enjoy the engaging content. What Netflix does is it premiers every episode of a season at once, tempting audiences to binge-watch a series upon release.

You might’ve seen everyone going crazy about shows they can’t get enough of (Black Mirror, 13 Reasons Why, Stranger Things, for starters), these are Netflix originals. The original movie selection includes 2020 Oscar nominees like The Two Popes, Marriage Story and The Irishman.

Netflix has become such a trusted source in the industry that content that shows in it are instantly boost in attention just from being on the service. So, the question is no longer whether someone wants Netflix, they already have it one way or the other.

You will find Tamil, Telugu, Bengali, and similar more regional movies on Prime but not on Netflix. Netflix has a rich library of international content but regional content still needs to grow. But Netflix is also expanding in India and planning to tie-up with local production houses to produce regional content.

Last year, Netflix had mentioned its plans to launch 22 original movies and 11 series from India by 2020. Netflix’s entry into making movies and series in regional language might prove game-changing as a large part of India’s audience prefer to watch content in their native language.

However, Amazon evidently suggests that it is quantity more than quality. However, Netflix also has more titles in IMDb’s lists of the top 250 TV shows and movies, which combine user ratings and popularity to determine its rankings.

Annual Video Budget of Amazon Prime Video and Netflix

Conclusion

The cheaper plans get picked up all the time. Amazon Prime Video is an amazing service, and it saves users from buying expensive Netflix membership. On the other hand, people who do not want to compromise on the good content, they easily love Netflix.

Currently, Amazon Prime is not as entertaining as Netflix but some users are fine with it. Amazon Prime Video has more than enough content to keep the streaming habits going strong. The choice is subjective here.

FAQs

Which one is cheaper Netflix or Amazon Prime?

Amazon Prime is cheaper compared to Netflix. Amazon Prime monthly subscription is available at INR 179 whereas for Netflix subscription price for basic plan ranges between INR 199 – INR 649.

How many subscribers does Amazon Prime Video and Netflix have?

Subscribers of Amazon Prime Video and Netflix are:

Amazon Prime Video subscriber: 21.8 million
Netflix subscribers: 5.5 million

Which country is the leading market of Netflix?

The United States is the leading market for Netflix followed by Brazil.

Which country is the leading market of Amazon Prime Video?

United Kingdom is the leading market of Amazon Prime Video.

How many shows are available on Netflix and Amazon Prime Video?

Number of Movies & Shows on Netflix Vs Amazon Prime Video:

Netflix: 15,000 Movies and TV shows
Amazon Prime Video: 30,000 Prime Video Movies and TV shows

March 28, 2022

Amazon Pricing Psychology- 6 Ways Amazon Gets You to Spend More?

Amazon, the company that started as an online retailer for books back in 1994 is now the largest e-commerce company in the world. As of January 07, 2022, the company is worth $1648.78 billion.

Today almost everyone depends on Amazon and with good reason. You can find almost everything you would ever need delivered right to your doorstep. So how did Amazon get where they are today?

Most importantly they’ve managed to stay at the top of the e-commerce business even with the rise of new competitors. To understand this growth and stability shown by the company, we’ll have to take a look at their history and analyze their biggest techniques that help them stay at the top.

About Amazon
The Psychology Behind Amazon’s Pricing

About Amazon

Founder and former CEO of Amazon, Jeff Bezos financed Amazon with $10,000 of his own money to get the company up and going in 1994. Amazon at that time was completely operated by Bezos, his wife, and a small staff team working in his garage in Bellevue, Washington. Shortly after in 1997, Amazon went public with a $300 million valuation at $1.96 per share.

Jeff Bezos working from his office in 1999

Amazon later on in 1999, allowed third-party sellers to sell their products using their website. Since the company already had satisfactory growth in the online sphere, retailers started using the platform with the goals of expanding their public reach and economy. Just within 4 months of letting third-party companies sell, over 250,000 customers had bought goods from a variety of different companies through Amazon.

Every year Amazon has been getting better, offering more services and a better customer experience than before. In 2005, Amazon introduced its customer loyalty program known as prime. Prime gave users that extra fast delivery and service speed that they needed for a small monthly fee.

Prime also expanded on to provide media services such as prime movies, music and gaming. Customers were more than happy to pay the monthly subscription for what they would’ve otherwise missed. At least that’s how the consumer mentality boosted Amazon’s sales after it launched prime.

The very next year the company went ahead with Amazon Web Services(AWS) to consider and profit from the various cloud computing needs of the world.

Amazon has also been actively developing the Amazon Echo line of smart products along with their assistant Alexa. The company has been growing ever since. Every year new products get added to Amazon, which starts bringing in new customers for the company.

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The Psychology Behind Amazon’s Pricing

Amazon’s success isn’t just because of the risks they take or companies they endorse, rather it’s mostly due to some clever marketing techniques. Communicating a product’s nature and value to a customer is essential for a successful e-commerce store. Here we’ll go through some of the well-known pricing strategies used by Amazon to boost sales.

1. Prestige Pricing

Consumer stores and shopping centers often use charm pricing as a way to get more sales. It’s common to see the price of a product just a cent below its actual cost. Prices like $4.99 seem cheaper compared to $5 when the difference is almost negligible.

Prestige Pricing

Prestige pricing is the exact opposite of this methodology. While some people may find lower prices more attractive, others may doubt its value and authenticity due to its lower prices.

Prestige pricing is where the price of a commodity is rounded off to the nearest rounded figure so the price seems ideal. The higher and rounded prices make a product seem more valuable than it actually is.

Customers are more likely to buy a product that will provide them with more value for money. That’s exactly what gets companies like Amazon more sales using this pricing method.

2. Price Anchoring

If you’ve ever used Amazon you might have noticed how you ‘always’ seem to get a better deal. Simple comparative pricing makes consumers feel like they’re getting better offers when in reality it’s just a way to promote sales.

Price anchoring is a popular way of getting more sales. Several e-commerce stores including Amazon make use of a simple strikethrough price which enhances the value of the actual price.

Although price anchoring and price discounts are different, the technique has been effective in gaining sales as shown by e-commerce statistics. In the world of digital stores, a sale is equivalent to a customer’s click. Hence price anchoring makes good use of perception to increase sales.

3. Amazon Prime

In 2022, about 142.5 million of Amazon’s total users are members of its Prime program. Amazon Prime is a paid subscription-based customer loyalty program that Amazon offers. Since its introduction in 2005, the number of prime users has been increasing progressively.

Amazon Prime Users Growth in the U.S.

Having a prime membership makes a user eligible for certain perks from Amazon. For starters, customers with prime get faster deliveries, access to special sales earlier, and Amazon’s media and entertainment services such as Prime Video, Prime Music, and Prime Gaming.

Paying about ₹179 monthly gets you all these benefits and it’s no doubt why people prefer to subscribe to prime. The feeling of getting a higher priority and more gains is what prompts people to stay as prime users. Amazon Prime video generated $3.6 billion in revenue sharing in 2020.

4. Comparative\Decoy Pricing

Comparative pricing is a technique used to boost the sales of one product using a decoy product with alternative pricing. Let’s say you have a product that you’re interested in. If two products of similar nature are being presented, one with better overall value than the other, the choice is rather obvious. Comparative pricing is where a product is intentionally made to look bad to promote the sales of another product.

Decoy Pricing in effect

While the decoy product dips in sales, the targeted product gets more sales and that’s completely intentional. The goal here is to get the customers to choose the targeted product instead of the other.

5. Price Framing

Everyone in marketing knows that a good sales pitch means a positive impact on sales. Price framing is how a product’s price is presented to the customers. The visuals associated with price presentation and context matter because a customer often makes their decision at the last minute and what they see has to appeal to their mindset.

Simply adding additional text such as ‘only for’, ‘best deal’, ‘20% OFF’ makes the customer feel like they’re getting a bargain. E-commerce companies gain much more sales due to their marketing campaigns which use this method as well.

6. One Time Deals

Adding a time limit to deals and offers speeds up the decision-making process for customers and also makes products seem more valuable. Amazon has been offering limited-time deals for a while now and it’s common to see flash sales during festive seasons. Often these one-time deals aren’t much different from what you can get a product for, considering you have the patience to wait a while.

As far as most common products on an e-commerce platform are considered, the prices never really stay high for long. It’s only a matter of time before new products rise and the older prices dip. However, customers are tricked into thinking that the reduced prices are indeed a limited-time offer and hence Amazon make huge sales just by adding a timer with a lower price.

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Conclusion

Amazon makes excellent use of modern-day technology and scientifically proven marketing techniques to always develop the perfect pricing to get sales going. It’s all about the customer mindset when it comes to e-commerce and that’s where the use of passively manipulative methods shines the most.

Not all of it is ethical, but the majority of applied techniques are rather intuitive and that is what keeps Amazon’s sales up high during the roughest of times.

FAQ

How does Amazon use psychology?

Decoy pricing, Price anchoring, Prestige pricing, and limited-time deals are some ways Amazon uses psychology to get you to buy more.

Why do Amazon prices keep changing?

Amazon keeps changing its prices according to trends and customer feedback.

How does Amazon use psychology to get you to buy more?

Amazon creates a sense of urgency by displaying the products left till it gets out of stock.

February 9, 2022
How does Amazon Manage its Supply Chain and Logistics?

Amazon is now the world’s largest e-commerce company in the world. Many small and medium-scale businesses benefit a lot from Amazon. If you are a curious person and are entrepreneurial in nature, you might wonder very often how Amazon supply chain works. The logistics of Amazon are fairly complex and quite vast. Over the years Amazon has improved its supply chain operations and many other things. Today Amazon’s supply chain is one of the most sophisticated ones.

Warehousing Strategy
Sophisticated Delivery Network
Use of Robots
Third-party procurement and Self-manufacturing
Cost-Effective Supply chain
High-level Automation
Outsourcing Inventory Management and Insourcing Logistics
Push-Pull Strategy for Supply Chain Success
FAQ

So, Lets look at the Complete process of Supply chain management of Amazon

The supply chain of Amazon is one of the most sophisticated complex supply chains in the world. It is because of its supply chain, it has achieved such great heights. So, let’s look at the basics of how Amazon manages its logistics? and some of the advanced optimization Amazon does in order to work more efficiently.

Warehousing Strategy

Amazon Warehouse

Amazon is one of the influential e-commerce companies because of its advanced warehousing strategy. It has a strategy by which it can locate the desired product properly. All the products are placed strategically so that they can be found easily. The products are segregated infrequently demanded and rarely demanded. Warehouses are optimized really well so that goods can be procured faster.

They do demand forecasting and keep the products of high demand ready to be deployed. Apart from that they also follow certain quality control rules depending on the product so that the customer gets the best quality product.

Sohpisticated Delivery Network

Amazon Drone Delivery

The delivery system of Amazon is very sophisticated in nature. The supply chain is very well planned which will help the company to deliver the product properly. For members who have a Prime subscription, their products need to be delivered to them within 2 hours or next day depending on the location. Amazon has put in place a number of techniques that can arrange and pack your product and send it to your home.

Amazon has deployed a number of drones, robots, and other logistics technologies to help the goods reach your house faster. There are also many other delivery robots through which they are delivering the goods to their customer.

Use of Robots

Amazon Kiva Robots

Amazon employs technology in its Warehousing to improve its efficiency. It uses a number of robots in its warehouse which helps in arranging the goods, moving them from one place to another.

Amazon had acquired an automation company called Kiva Systems. It was renamed Amazon robotics after acquisition. These robots decreased human intervention and improved the delivery speed.

Amazon also implemented drones so that they can deliver their goods where logistics companies could not reach. Amazon has also deployed many small delivery robots which deliver goods to other people. These technologies enhance the delivery speed and make the whole process very easy.

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Third-party procurement and Self-manufacturing

Amazon Manufactured Products

Amazon is not just a retail e-commerce website now where it sells products from 3rd party. It is a company that ultimately focuses on customer satisfaction. In due course of time, Amazon has looked into possible ways of decreasing the cost of products.

With time, Amazon started manufacturing its own products like Earphones, iPhone chargers and many other things. These goods were much cheaper than the 3rd party manufacturers.

The product quality is also much better as the quality control is done by Amazon themselves. This leads to a lot of simplifications and decreases a lot of complications on the part of Amazon.

Cost-Effective Supply chain

Amazon has kept the cost of its supply chain very low. Due to its huge economies of scale, it was able to keep its cost very low. The per-unit supply is very cost effective. Amazon has several warehouses of its own and it has automated to a great extent. This is why they have a lot less operation cost than other companies.

High-level Automation

Amazon Delivery Robot

From its warehouses to delivery, Amazon has deployed a lot of robots to automate it. There are robots that would move and arrange the goods in the warehouse and also packaging the goods. For the delivery, Amazon has deployed drones, delivery robots, to deliver the product to the customer’s house. This decreases human involvement and thus decreases the cost of operation.

Outsourcing Inventory Management and Insourcing Logistics

Amazon outsources its inventory management to third parties wherever they see it’s feasible. Outsourcing helps them reduce costs and reduce the unnecessary expansion of the supply chain.

The third party stores the goods in their local storage and it is not stored in an Amazon warehouse. These third-party warehouses are generally located at special places and are supplied with those goods which are in high demand in that area.

Push-Pull Strategy for Supply Chain Success

Amazon implements a push-pull strategy in its warehouse management. The warehouses owned by Amazon are located in more strategic locations. While the Warehouses belonging to the third party are located at other places. So in the case of Amazon’s warehouse, it implements a push strategy and in the case of a third-party warehouse, it implements a pull strategy.

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Conclusion

Amazon has designed a supply chain in which it can optimize any part of it. It has introduced high-level automation using robots to decrease human employment. This helps them decrease the cost. From warehouse to delivery it has deployed several robots to arrange pack and deliver the product to the customer’s house. The supply chain and logistics of Amazon is one unique entity in the whole world.

FAQ

Does Amazon have the best supply chain?

Yes, Amazons supply chain is counted as one of the most efficient supply chains in the world.

What is the revenue of Amazon?

The revenue of Amazon of 2020 was 21.33 billion U.S. dollars.

What are the tasks that Amazon Outsources?

Product Listing and Optimization., Product Photography Services, Managing Sponsored Ads/ PPC, and Customer Support Services are some of the tasks that are outsourced by Amazon.

October 10, 2021
Top 13 OTT Platforms In India | Best Video Streaming Platforms
Gone are the days when TV or movie theatres were the only way to absorb video content. India has seen a tremendous rise in the consumption of video content on various online platforms in the last couple of years. The major reason behind this exponential growth is often attested to deeper internet penetration and ever-increasing smartphone usage. Today, there are many articles on OTT platforms which justify why such mediums are better than cable TV. OTT (over-the-top) platform subscription is pocket-friendly, and then there’s the comfort of using such platforms anytime, anywhere.

Low cost and efficient mobile recharge packages along with good internet connectivity have permitted both rural and urban populations to consume video content at an alarming rate.

OTT platforms provide online content in different genres. Netflix, Amazon Prime, and ALT Balaji are some extremely popular OTTs.

With so many streaming platforms to choose from these days, it can be difficult and tedious to choose the appropriate one. The one that not only broadcasts all of your favorite series and movies, but also all of the documentaries that are currently trending. However, with so many alternatives to pick from, it might become a little daunting.

Hundreds of streaming platforms flooded the Indian market during the pandemic. The market is becoming increasingly saturated as every corporation develops its own streaming platform. But which streaming services are most popular in India? What companies have unlocked the streaming market’s code of dominance? Now that you’re interested, we’ve compiled a list of the Top 10 Streaming Platforms in India, which are both popular and well-liked.

Reasons For Tremendous Growth In OTT Platform Usage
Growth And Future Of OTT Platforms In India
Top OTT Platforms In India
Disney+ Hotstar
Amazon Prime
Netflix
Voot
ZEE5
SonyLIV
ALTBalaji
MX Player
JioCinema
Eros Now
Airtel Xstream
Viu
TVFPlay
Conclusion
FAQs

Reasons For Tremendous Growth In OTT Platform Usage

Freshly Brewed Content

OTT platforms provide brand new and freshly brewed content in different genres and languages. These OTT platforms consider unique and risky concepts to create video content. The topics are a breeze of fresh air for Indians and deviate significantly from the video content people are used to. And such content doesn’t fail to entice the audience. Language is no longer a barrier as there is video content for almost every language, making OTTs universally accessible.

Affordable And Cheap

Providers charge nominal rates thereby making video streaming affordable for most of the economic sections in India.

Screening Movies Before Television Screening

Movies are now being released on these platforms way before their television screening. Hence, people don’t need to wait for movie ticket bookings and stand in long queues. Moreover, the concept of first-day, first-show is slowly losing its charm due to OTT platforms.

Free Subscriptions on OTT Platforms

Top OTT platforms lure the audience through the freemium subscription policy or by providing a free trial for a month. For example, Disney+ Hotstar allows users to access some shows for free whereas the premium shows are paid. On the other hand, APV and Netflix allow users to try their services for free during the initial months of subscription.

No Interruptions

The shows on such platforms are usually ad-free, making it a pleasant experience for the viewers. Users don’t have to see the same advertisement again and again and can enjoy the show without any interruption.

Video On Demand

Unlike TV, you don’t have to carry a remote and set-top box to enjoy your favorite video content. With the help of these OTT services, you can watch your favorite shows anytime and anywhere.

Limited And Quality Video Content

Unlike the Indian video content, these OTT platform services have shows restricted to a limited number of episodes rather than going on for several years. The content keeps the youth addicted to such platforms. Also, the content is not based on cliche storylines and abstains from the repetition of themes, something that’s often witnessed in TV-based video content.

Download And Watch Later

OTT services don’t maintain any particular time slot for shows and series, unlike TV. This permits people to have their own schedule for watching on such platforms. The option of downloading from OTT providers allows the audience to not sit idle in case of poor internet connectivity.

Other smaller (yet expanding) OTT platforms in India are Voot and TVF Play. YouTube is also planning to launch an original content platform.

Growth And Future Of OTT Platforms In India

OTT subscriber base in India

According to a recent PWC report, smartphone penetration in India is expected to reach around 99% by 2022. And at the same time, OTT platforms are expected to grow at a CAGR of 22% by 2022 to around INR 6000 crores. With such a huge user base comprising a large number of smartphone consumers under the age of 35, OTT platforms will focus more on youth-friendly content. Another factor helping in the tremendous growth of OTT platforms in India is the rising level of disposable incomes, i.e., an average Indian consumer can spend more amount on his enjoyment today as compared to a few years back. Shows and movies in local languages (Tamil and Telugu are some examples) have attracted people from various fronts to these platforms; the reason being unlimited movies and shows in their mother tongue at dirt cheap rates.

It’s not that such platforms have content only for the youth; they offer something for the kids, the elderly, and every other age group.

Internet data consumption per minute has also come down. Sometime back, streaming a two and a half hour movie required 1GB of data for 360p quality. Nowadays 800MB is sufficient for the same movie in 480p quality. Thus, the streaming quality has improved with the decrease in data consumption. People can now watch two movies by consuming just 1 GB or 1.5 GB of data.

Price also plays a dominant factor; Amazon Prime saw a larger user base than Netflix in 2016 because of this factor. Amazon Prime charges INR 129 per month for unlimited access while Netflix charges INR 800 for its premium quality content. So, OTT platforms must work on a framework to provide maximum benefits at minimum cost, a tough nut to crack but a necessary one to lure the Indian audience.

Top OTT Platforms In India

Disney+ Hotstar

Users Worldwide: 103.6 Million
Users In India: 25 Million
Price: Starts at Rs 399/Year

Disney Hotstar – Top OTT Platform In India

Disney+ Hotstar launched in India in April 2020. It’s a partnership between Disney and Hotstar, Star India’s streaming service. As a result, it includes all of the Disney+ content as well as the original Hotstar content. In India, it presently has 28.5 million members, making it the most popular streaming service. The exclusive Disney material and inexpensive pricing of Rs 399/year for the lower-tier subscription plan appeal to younger people looking for a less expensive source of entertainment, especially during the pandemic.

Disney+ Hotstar is another over-the-top media service in India. It is a Star Network product that was launched in February 2015. Disney+ Hotstar has swiftly become one of the largest video-on-demand platforms in the country. Disney+ Hotstar is the only platform where the best TV shows from around the world, movie premieres, live sports, and events are consolidated. It has several user-friendly features such as an adaptive video playback experience which automatically adjusts according to the available bandwidth, the creation of playlists, and the availability of content for download. Users can consume Disney+ Hotstar content on the go with the best viewing experience.

Amazon Prime

Users Worldwide: 200 Million
Users In India: 38 Million
Price: Starts at Rs 329 for Three Months

Amazon Prime Video – Top OTT Platform In India

Amazon Prime Video was first introduced in India in 2016. It now has over 38 million unique users in India, demonstrating its widespread popularity. The streaming service has a lot of great shows and movies, like The Boys, Mirzapur, The Family Man and so on. Around 200 million people use Amazon Prime Video worldwide, and the figure is growing every day. What makes it even better received is the low pricing of Rs 329 for a three-month subscription and Rs 164 for those aged 18 to 24.

A year after the launch of Netflix in India, Amazon Prime Video also made its entry in the country. According to the director of content at Amazon Prime Video (India), India accounts for the highest number of Prime members in the debut year, growing fastest among the 16 countries that the platform is present in. India is a price-sensitive country and at Amazon Prime’s low-priced subscription fee, it gives the users great value for money.

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Netflix

Users Worldwide: 203.66 Million
Users In India: 3 Million
Price: Starts at Rs 199/Month

Netflix – Top OTT Platform In India

When it comes to Netflix, there isn’t much that has to be said. It’s something that everyone has heard about. With over 203.66 million customers globally, it is one of the largest streaming platforms in the world. Netflix first arrived in India in 2016 and has since released several of the ‘Netflix India Originals.’ Sacred Games, Mismatched, Masaba Masaba, and many others are among the most popular. In India, Netflix now has over 3 million members, and this figure is steadily increasing.

It is a US-based video streaming company that is now available in India at a starting subscription price of INR 199 per month (goes up to INR 800 per month) after a free month of trial. While most of the OTT service platforms follow a mix of advertising-led and subscription fee-based business models, Netflix, in keeping with its global strategy, is free of advertising in India.

Voot

Users In India: 100 Million
Price: Starts at Rs 99/Month

Voot – Top OTT Platform In India

Voot was introduced by Viacom 18 in 2016 to showcase all of its TV series as well as the most latest episodes. It was totally free, and there was no need to subscribe or pay to view the content. In March of last year, Viacom 18 launched Voot Select, an online service that, unlike the previous platform, Voot, required a membership. Some episodes and movies are still available for free, but some exclusive series and movies are only available to subscribers. Voot Select has around 1 million paying subscribers. It charges Rs 99 for a one-month subscription and Rs 999 for an annual subscription.

Voot is a video-on-demand platform that is a part of the digital arm of Viacom18. Viacom18 is one of India’s largest growing media networks. The platform provides its audience with a vast range of content choices and preferences. It has a pool of 45,000 hours of content which includes COLORS (Hindi), Viacom18 Motion Pictures, MTV, Nickelodeon, and MTV Indies. It offers the biggest TV Shows, Blockbuster movies, Toons, and VOOT originals.

Voot’s aim is to capture the digital video landscape with its fresh and new-age content without any premium cost. One of the major attractions of the platform is its original content while it covers a plethora of categories like dramas, comedies, spoofs, and everything else.

ZEE5

Users Worldwide: 310 Million
Users In India: 100 Million
Price: Starts at Rs 42/month

ZEE5 – Top OTT Platform In India

ZEE5 is an online streaming service owned by Zee Entertainment Enterprises. It went into effect in February 2018. Although it is a free service, there is now a ZEE5 Premium option that allows you to watch many exclusive movies and series for Rs 299 for three months. ZEE5 has content in 12 different languages that make it worth the money. And it claims to have 32 million paid subscribers and around 100 million active users. ZEE5 has recently partnered with TVF for streaming movies and shows.

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SonyLIV

Users Worldwide: 98 Million
Users In India: 80 Million
Price: Starts at Rs 99/Month

SonyLIV- Top OTT Platform In India

Sony Pictures Networks India launched SonyLiv in January 2013. It is a free service but also has a premium version and the subscription starts at Rs 99 per month. It has a ton of shows and movies to choose from with no disturbance from ads. SonyLIV currently has around 5.5 million subscribers. It offers many popular shows, like Girls Hostel, Welcome Home, Maharani, and many others.

SonyLIV is bound to be present in the list of the top OTT media services. It has been developed by Multi-Screen Media. It has a mix of both free and premium content and has partnered with SPI International to showcase seven more international television channels across different genres (in addition to the existing five channels). SonyLIV’s premium content comes at a subscription cost of INR 99 per month. It offers viewers shows from the Sony stable – SONY, MAX, and SAB. Apart from enabling viewers to watch the latest shows, Sony LIV also allows subscribers to watch the re-runs of old episodes, movies, and special events.

ALTBalaji

Users In India: 76 Million
Price: Starts at Rs 100 for Three Months

ALTBalaji – Top OTT Platform In India

ALTBalaji was launched in April 2017 and is owned by Balaji Telefilms Ltd. It is well-known for catering to an Indian audience in particular, with daily soaps and exclusive movies and series. It has around 76 million active monthly users and around 5 million paid subscribers. It is a paid service, but you can get a free trial of seven days and can watch all the content on the platform. And the subscription starts at Rs 100 for three months. That’s a great price if you are looking for a cheap service platform.

ALT Balaji is an ad-free subscription-based service which is the product of film and television production house, Balaji Telefilms Ltd. It provides 32 original shows in Hindi, Bengali, Tamil, and Gujarati at a subscription price of INR 300 per year. With this platform, Balaji wants to venture into clutter-breaking content and offer something for everyone. It is offering entertaining video content to both Indian residents and those living abroad.

Top OTT Platforms in India

MX Player

Users Worldwide: 280 Million
Users In India: 148.8 Million
Price: Rs 370

MX Player- Top OTT Platform In India

The MX Player started in India as a video player. It was launched in 2011 but was re-launched in 2019 as the streaming platform. It began in India, but in 2020, it expanded its service and is now available in many countries, including New Zealand, Nepal, the United States, the United Kingdom, Bangladesh, Canada, Australia, and Pakistan. It has around 280 million users worldwide. And it contains shows like Aashram, Bullets, Dangerous, and many others. It is a free service, but MX Player Pro is a paid version that offers exclusive content without any ads and is priced at Rs 370.

JioCinema

Users In India: 100 Million
Price: Free

JioCinema- Top OTT Platform In India

JioCinema is a streaming service from Jio Platforms, which was launched in 2016. It is free for Jio sim users and contains a great number of shows, films, web series, and documentaries. It has about 100 million users in India and the number keeps growing every day.

Eros Now

Users Worldwide: 221.5 Million
Users In India: 148 Million
Price: Starts at Rs 49

EROS Now- Top OTT Platform In India

Eros Now is a streaming platform launched in 2012 and is owned by Eros Digital. It has plenty of Indian movies and web series for its viewers. And the best thing is that the streaming service begins at Rs 49 in India. Eros has about 180 million users worldwide and 30 million paid viewers.

Airtel Xstream

Users in India:
Price: Rs 49/Month

Airtel- Xstream- Top OTT Platform In India

It is a streaming service provided by Bharti Airtel. It was released in September of 2020. It’s a free service for Airtel Sim users, but you need to sign up for a plan if you want to watch the content as a non-Airtel user. The price is Rs 49 per month for non-Airtel users.

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Viu

Users Worldwide: 36 Million
Users In India: 5 Million
Price: Starts at Rs 99/Month

VIu- Top OTT Platform In India

Viu is a streaming service provided by Hong Kong-based Viu International Ltd. It features many films, shows, and series, mostly Korean and Indian. It is offered throughout Asia, Africa, and the Middle East. It has about 36 million users worldwide and 5 million users in India. The price starts at Rs 99 a month and is quite popular among the Indian audience.

TVFPlay

Users In India: 9.8 Million
Price: Free

TVF- Top OTT Platform In India

‘The Viral Fever’ also known as TVF is an online streaming platform that provides tons of original content for free. Its shows like ‘Permanent Roommates’ and ‘TVF Pitchers’ have pushed a lot of fans towards the platform and are a big hit among the fans. And the best part is that it’s free.

In India, there is no scarcity of streaming options these days. There is something for everyone as more and more companies develop their streaming platforms. You can make your selection based on price and the type of series and movies you wish to watch.

Conclusion

India is a huge market for OTT platforms, so offering different plans to satisfy a diverse user base with different income levels is the only solution for faster absorption and growth. Focusing more on Indian-friendly content would be another plus point for OTT providers. For now, it can be said that Indians will continue to drift towards these platforms, though television would still remain an important commodity in India. There still exists a section of the population that doesn’t have access to smartphones and internet. Moreover, the older generation prefers the television over OTT platforms for entertainment.

FAQs

What is a Streaming Platform?

A streaming platform is an online entertainment service that provides on-demand access to TV series, movies, and other streaming material.

What is the meaning of OTT?

OTT stand for over-the-top. It is a means of providing television and film content over the internet on request.

What is an OTT Service?

Over the top, or OTT, refers to any streaming service that transmits content over the internet.

Is Netflix an OTT?

Netflix is a popular OTT (over-the-top) service that provides users with content such as movies and TV series.

How many streaming platforms are there in India?

In India, there are around 40 suppliers of over–the–top media services (OTT).

What is the future of OTT in India?

Future of OTT in India: A rise of OTT platforms in India is expected to grow at a CAGR of 22% by 2022 to around INR 6000 crores. With such a huge user base comprising a large number of smartphone consumers under the age of 35, OTT platforms will focus more on youth-friendly content.

What are the top 10 OTT platforms in India?

Here are the Top 10 OTT platforms in India:
- Amazon Prime Video
- Netflix
- Disney+ Hotstar
- Voot
- ZEE5
- Sony LIV
- MX Player
- ALT Balaji
- Eros Now
- JioCinema
July 5, 2021
Why Streaming Platforms Are Focusing on Women-Centric Content?

From the iconic and path-breaking ‘Mother India’ to the flashy and entertaining ‘Four More Shots Please’, entertainment industry in India has come a long way and along with that came the entirely new and engaging era of OTT platforms such as Netflix, Prime Video, Disney+ Hotstar and many more.

However, this article is not about the success or the net profit generated by these streaming platforms every year. India’s entertainment industry is one of the most profitable industries with a revenue of over $34 billion, and recently, a fundamental shift has been witnessed in the industry as streaming giants like Netflix and Prime Video are targeting and expanding female audience.

Women represent a key demographic for the Indian entertainment industry and thus the need of the hour is to have diverse cinematographers, storytellers, writers, directors, and actors share their unique perspectives in raising the bar of the entertainment industry by the increased inclusion of women-centric roles.

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Streaming Platforms Are Focusing on Women Centric Movies

Four More Shots Please! | Amazon Prime Video

“More than half of Netflix films released in India this year have a female producer or director, according to Monika Shergill, Netflix India’s vice president of content. Netflix saw unique women visitors jump to 40% last year from 26% in 2018, according to Comscore data. The Los Gatos, California-based company is working with 30 women producers and directors besides a dozen women writers this year, Shergill said.”

The fundamental shift in the industry has been viewed as a consequence that all of Amazon Prime Video’s six originals released in India this year had women in key roles while more than half of Netflix films had a female producer or director.

Also, OTT players were keen enough to target female viewers as soon as the movie theatres were shut to the coronavirus induced nationwide lockdown. We witnessed a surge in women-centric content such as ‘Masaba Masaba’ and ‘Bulbbul’ on Netflix to ‘Pushpavalli’ on Amazon Prime.

Still from Masaba Masaba | Netflix

Bollywood industry which earlier relied on an A-list male superstar in lead to top the charts and become a blockbuster is now focusing on the push for equality by giving females leads the chance and choice related to the content targeted on them. According to data from Statista, as incomes rise in the $2.9 trillion economy, per capita spending on media and entertainment is expected to almost double to $35 in India by 2021 from five years earlier.

Traditionally, watching movies and shows were considered as a group activity, however, with the surge in the use of smartphones and streaming platforms, people can watch what they want, where they want, and by themselves on their personal devices. Thus, content creators and streaming platforms are now able to provide target based stories and cater to niches.

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A 2016 study by Google and A.T. Kearney estimated that Indian women’s share in overall online spending will jump to 42% by 2020 from 20% in 2015 whereas, a 2019 study by the Boston Consulting Group said Indian women are increasingly having a say in household purchase decisions.

Creative Freedom

Scene from Bulbbul | Netflix

One additional benefit of streaming platforms is the prospect of less financial risk compared to contemporary ways. Thus, producers are also ready to take the liberty of creative freedom and experimenting with characters. Prominent examples of this, Netflix film Bulbbul, a supernatural film in which a woman is mistaken for a witch, Gunjan Saxena, a biopic about India’s first woman combat pilot who went to the Kargil war and Amazon Prime’s series Four More Shots Please, which openly addressed taboo issues such as female sexuality and homosexuality. Thus, better access to the Internet is motivating creators to pitch stories that resonates with females.

Also, India’s experience throws light on the worldwide trend in which more women are involved in the creation of streaming content directed toward women. Netflix had women helming 20% of its 53 original U.S. films last year, nearly double the rate of representation for women directors across the 100 top-grossing U.S. films of 2019.

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April 24, 2021
How Indian media has Transformed over years [Case Study]

Media as we know it has become an indispensable part of our lives. Without it, I think we’d barely sustain the economic and demographic environment lest having a path carved to move forward. The enormous sea of information that we have access to, is to the grace of this media.

We have come decades ahead from telegrams and fax messages which were the primary mediums of passing sensitive information to the world of the internet and smartphones where nothing really is ever sensitive.

The 24*7 media has taken us into the whirlpool of its headlines and breaking news and keeps us on our toes with the latest updates. Print media, Cinema, broadcasts, radio, and now the Gen Z favorite digital media are now the new improved, tech-savvy, and info-rich tools used to pass on information to the masses.

History of Indian Media
The Present of the Indian Media
Growth of Indian channels, and media outlets
How Indian media has changed the course of country’s politics and dynamics
Future of Indian Media
FAQ

History of Indian Media

Indian media is the largest and the oldest media that has seen itself unfold during the 18th century. The footfalls of pre-independence saw the birth of print media in 1780. Hicky’s Bengal Gazette was the first newspaper introduced under the British Raj.

As the fate of India unfolded in the hands of the colonizers there were several other newspapers that steadily made their presence established. This print media later proved to become a powerful weapon at the hands of freedom fighters who spread the message of independence to the masses. The Madras Courier (1785) and the Bombay Herald (1789) were the ones that followed in the early 18th century.

Pre-Independence

Pre-Independence saw a multitude of print media founders support and aggregate the freedom struggle. Mirat-ul-Akbar ( a Persian Journal) by Raja Ram Mohan Roy, Rast Goftar by Dadabhai Naoroji, Kesari by Bal Gangadhar Tilak. The Indian Opinion by Mahatma Gandhi were some of the prominent newspapers that took responsibility to encourage masses to come forward for the freedom movement.

After Independence

Even after Independence, the print media was dominated by English newspapers. Firstly, because of the exalted position of the language and secondly because of the Morse code on typewriters which were difficult for vernacular languages. Steadily, Indian languages rose to the occasion and started printing their own press.

Indian press witnessed its first-ever revolt when the (then) Prime Minister Indira Gandhi announced a nationwide emergency during 1975-1977. This has set a precedent for how nations should not be treating their press. This suspended basic civil liberties-press being among several others.

The Draconian law

The Draconian law under the government threatened and arrested anyone who reported against the tyranny. The 21 month period of emergency had the Indian media on its leash and the publications had to run their content through a Chief Press Advisor before publishing.

Radio broadcasting was first initiated in 1927 but became a state-owned department in 1930. The ministry of broadcasting and information then held the apparatus including Doordarshan, the first Indian Television channel. It is one of two statutory bodies of the Indian Public Broadcaster Prasar Bharati.

Doordarshan

Indian Cinema

The Indian Cinema dates back to 1913 when Dadasaheb Phalke, a scholar on Indian languages and culture, pioneered the motion picture industry by producing the first full-length motion picture “Raja Harishchandra”. Indian cinema has been tested in many waters to become Bollywood today. Today, India is the second-largest producer of movies in the world.

Indian cinema with respect to its viewers has been very protective of the content and subject matter that is shown to the masses. India holds very dearly to its religious and social-political views. Indian audiences are still not very accepting of mature and sensitive topics such as same-sex relationships, casteism, and politics.

There have been excellent filmmakers who have tried to carve out these subjects keeping in mind the sensitivity of the Indian audience. We are yet to reach the maturity mark as a collective audience when it comes to raw and unfiltered content.

Indian media

The Present of the Indian Media

The media and entertainment industry has grown exponentially over the past few decades. Today, with more than 118000 registered publications for newspapers and periodicals and makes India the second-largest country in newspaper consumption.

Television Media

India has 850 TV channels across all spoken languages with 197 million households having television sets in use. Every language in the Indian subcontinent has its own set of channels of entertainment. Colors, Zee, Star are some of the leading networks spread pan India covering news and entertainment in all the main languages.

India is currently witnessing the exit of single-screen theatres as major multiplex players like Cinepolis, INOX, PVR, and Carnival Cinemas have taken over the screenings. India has lost about 12% of single-screen theatres due to the novel corona Virus outbreak. These theatres are unlikely to return to business and may be taken over by multiplex chains.

OTT Platforms in India

The Over-the-top (OTT) platforms have been around since 2008. But their viewership rose significantly when we were forced into our homes for almost a year thanks to the pandemic. OTT platforms were devoid of censorship and operated pan India since the internet has no geographical barriers.

Today OTT platforms in India have valued at a revenue of Rs 40,000 crore with 40 mainstream OTT platforms running under the Indian umbrella. Amazon Prime, Disney+ Hotstar, Netflix India, SonyLiv, Alt Balaji, Voot are some of the established OTT platforms which are giving the DTH industry a run for its money.

Growth of Indian channels, and media outlets

Currently, the country consumes media through platforms such as TV, OTT, Print, VFX, Radio broadcasts, Gaming, and digital advertisements. India’s Ad revenue is forecasted to expand at a CAGR of 4.3% between 2021-2024.

Due to the rapid growth in the number of internet users, the digital avenues are looking at a projection to reach a CAGR of 26% by 2024 including print and TV platforms, making India the six-largest demographic with an industry revenue worth $2.9 Billion.

Digital advertising revenue in India from financial year 2010 to 2020

How Indian media has changed the course of country’s politics and dynamics

News Media

With news giants like NDTV, CNBC, Aaj Tak, and ABP networks, India has around 892 news channels. These media houses have gained power over the course and have divided the Indian audiences into two wings.

Some of the media houses are owned by the wings themselves. The politics and propaganda attribute to the success and TRPs of these media houses. A free press is becoming a serious worry in terms of authenticity and is lacking awareness.

In recent times, journalism has cost a few passionate journalists their lives, and freedom of expression which one of the basic human rights in our constitution is ceasing to have much value. The political dominance over the free press is evident and intimidating.

India’s Freedom status

India’s status has been degraded from ‘Free” to “Partially Free” by the NGO Freedom House due to a “crackdown on expressions of dissent by the media, academics, civil society groups, and protesters”.

According to the Freedom in the World report, 2020, India’s score has decked to 67 from 70 out of 100. This is extremely serious and unnerving as we are losing the democratic status that we’ve held on since our independence.

“Under Modi, India appears to have abandoned its potential to serve as a global democratic leader, elevating narrow Hindu nationalist interests at the expense of its founding values of inclusion and equal rights for all,” the report said.

The free reign enjoyed by the digital media became a recent target of the nationalist government when it introduced new Guidelines for Intermediaries and Digital Media Ethics Code) Rules 2021 (Rules) for the functioning of OTT platforms. The new code of ethics needs to classify the content based on the viewer’s age, theme, tone, and impact.

Future of Indian Media

“With India’s decline to Partly Free,” the report said, “less than 20 percent of the world’s population now lives in a Free country, the smallest proportion since 1995.” The current state of media and entertainment is a little gloomy and seems to be surrounded by the clouds of arbitrary laws and coercion.

The growth in terms of numbers is truly exponential. With OTT and Social Media platforms, media is pushing itself towards its highest potential. Content is King: but what if this content is under constant surveillance and the freedom of expression is compromised.

The future is blurry for Indian Media and entertainment with an arbitrary wave riding its proficiency. Will India go back to being “Free” again? Or will it succumb to the political propaganda and lose its free press. These are the questions that are doing rounds of discussions among the intellectuals of our country.

FAQ

Who owns print media?

ThePrint is an Indian online newspaper. It is supported by Printline Media Pvt Ltd, a company headquartered in New Delhi.

Who owns NDTV in India?

New Delhi Television Ltd. is an Indian news media company that owns and operates the broadcast news channels of NDTV India and NDTV 24×7.

Who is the first woman journalist in India?

Homai Vyarawalla was India’s first woman photojournalist.

Conclusion

Indian media is a mess and we need to learn to distinguish between faux news and genuine journalism. As citizens, it is our responsibility to maintain the status of a democratic nation on the world front.

March 22, 2021
20 Interesting Facts About Netflix You Need to Know

Netflix is currently one of the biggest OTT platforms in India. It was founded in year 1997, in United Sates by Reed Hastings and Marc Randolph. Netflix has a very interesting past that needs to be Explored, so Here are 20 interesting facts about Netflix that you need to know.

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Awards
Most Watched Movie
Netflix’s DVD service
Own Subscriptions
Internet Traffic
First Film
House Calls
Web Series
Netflix Paid Disney
Smart Tv
Kibble
American Households
Tesla
Title Recommendations
6 Titles
Blockbuster
Award Shows
Special Socks
Tv and Cable Networks
FAQ

Advertisements

Netflix subscription saves you from 160 hours of advertisements. Before Netflix, an average individual used to spend around 160 hours of his time watching an advertisement on his subscribed television channels.

Awards

In 2018 Netflix won more Emmy awards than HBO. When Netflix started creating its original content everyone doubted the quality but in 2018 it won more Emmy awards than HBO. HBO had been winning the most awards at the annual television awards ceremony for the past 17 years.

Most Watched Movie

In 2017 a Netflix Subscriber watched the movie Madagascar 352 times. It is more like watching the same movie every day the entire year.

Netflix’s DVD service

In 1999 Netflix started offering subscription-based DVD service. Even now around 2.7 Million people subscribe to Netflix’s DVD service.

Netflix DVD Service

Own Subscriptions

Netflix allows you to share your account with your friends and most probably you would even have subscribed to a Netflix account pooling in money with your friends. But still, 55% of the Netflix users pay for their subscriptions.

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Internet Traffic

In the first half of 2019 Netflix generated the most amount of internet traffic which accounted for 12.9%. It was 0.6% more than the traffic generated by Google.

Netflix Internet Traffic 2019

First Film

Netflix’s first film was called the Example show. It was made to test the frame and the quality of the film. Example show was a short-film which had strange and random scenes put together.

House Calls

Netflix’s employees had to make house calls in the beginning. People living around the California area used to receive house calls for taking a survey. They used to collect the data to know which titles to add next to their library.

Web Series

In the web series ‘The Witcher‘, Henry Cavill the actor has done all of his stunts. Also the web series ‘Sex Education‘ was filmed on purpose to depict the school culture of the British and the U. S.

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Netflix Paid Disney

Netflix used to pay $300 Million to Disney to stream its content. Disney used to play Netflix’s content before the release of Disney+.

Smart Tv

Smart TVs are being more and more common in recent years. It is observed that 80% of the Netflix Subscribers are using their services on their Smart TVs.

Kibble

In the early days, the company found it hard to find a name. The co-founder Marc Randolph suggested the name “Kibble”. It was a temporary and the first name of Netflix. Later the company was renamed as Netflix.

American Households

Netflix subscriptions have grown exponentially from 2010. In 2010, the number of American households who owned Netflix was 16%, and in a decade, it increased to 62%. Almost two-thirds of American households own a Netflix account.

Tesla

The CEO of Tesla, Elon Musk had informed that you could stream Netflix in your Tesla car from 2019. This feature can be used only when the car is safely parked. This keeps the passengers entertained while waiting for their cars to charge or waiting to pick someone up.

Netflix can be streamed on Tesla

Title Recommendations

Most of Netflix’s subscribers watch popular shows. But 80% of Netflix’s subscribers watch the recommendations given by the algorithm.

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6 Titles

Netflix’s users will have at least 6 titles they have watched it in common. Netflix finds this as a common factor in its large user base.

Blockbuster

In the year 2000 Netflix was about to sell it to Blockbuster for $50 Million. The company thought it was the right decision as they didn’t have enough money to survive. Blockbuster later rejected the offer and now Netflix is the largest OTT platform.

Award Shows

In 2013 Netflix had released its own award show called the Flixies. It was a fan-based awarding, Netflix subscribers could choose the nominees and winners through voting in numerous categories. This was just an experiment done as a promotional strategy.

Special Socks

Netflix designed a special sock that detects when you fall asleep. The socks will automatically pause your show so that you don’t miss out on any part of it. It has some electronic devices which will detect your pulse and do the work.

Tv and Cable Networks

Currently, Netflix has a greater number of subscribers than any other Tv and cable network in America.

FAQ

Who is Netflix main competitor?

Amazon prime video is the main competitor of Netflix.

Who refused to Buy Netflix?

In the year 2000 Netflix was about to sell it to Blockbuster for $50 Million, but Blockbuster rejected the offer.

Who is the CEO of Netflix 2020?

Ted Sarandos is the current CEO of Netflix and has also been elected as board of directors of Netflix.

Conclusion

Netflix is the leading OTT platform that has increased its subscription base over the years. It has made a majority of the individuals change from the traditional Tv and cable operations. Netflix in India is growing exponentially. The subscription rate of Netflix has been increasing among the Millennials.

March 5, 2021