Amazon Prime is on track to overtake the entire US cable TV industry combined in terms of subscribers, with the tipping point predicted to occur during 2018, according to new research.
A new market survey by Morningstar reveals that Amazon Prime subscribers total 79m US households, while cable subscriptions are projected to dip to 90m.
The study does not show that Amazon’s Prime Video service is more popular than TV, as the the main reason most people subscribe to Amazon Prime is still the fast delivery of products.
However, the findings are an indication that Prime is moving toward becoming a mainstream subscription for wealthy Americans.
Amazon has been courting lower-income American households with discounts for those on government assistance, as well as a monthly payment option for those who don’t want to cough up $99 for an annual subscription.
Amazon itself refuses to divulge official numbers, forcing analysts to guesstimate based on the firm’s cash flow statement – resulting in a range of estimates from as low as 60 million US subscribers to as many as 85 million.