Amazon Is America’s Favorite Streaming Service

The American Customer Satisfaction Index is the gold standard for the measurement of what people think about the services that brands in several dozen categories offer. The latest industries examined are under the category “telecommunications,” which includes wireless service, cable and streaming media brands. (These are the youngest companies in the S&P 500.)

Streaming media is among the most crowded parts of consumer entertainment sector. There are several dozen streaming services. Just three or four brands dominate the sector. At the top of this list are among the older brands: Amazon and Netflix. They have been joined by streaming services from virtually every other media company.

In the “video streaming services” category, Amazon finishes in first place with a score of 80. It is followed by Peacock, which is owned by Comcast, at 79. Hulu, Paramount+ and YouTube Premium are next, each with a score of 78. Disney+ and Apple TV+ are near the bottom with scores of 76.

Amazon is in a category by itself. It is part of Amazon’s Prime loyalty program, which offers other services, like free delivery. No other streaming operation offers a similar suite of services. This may be a reason Amazon does so well. People who have the Prime service are more likely to shop at Amazon, so it may be that the profitability of Prime Video is not essential

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The streaming media business used to be a profit engine. As competition has grown, that has been less and less true. Disney has lost billions of dollars on Disney+ as it has chased market share. Financially, the decision to do this was terrible.

Service ultimately is important for the companies that provide streaming media, but so is raw subscriber count. Most research shows that people will subscribe to three or four services. Amazon and Netflix, each of which has over 200 million subscribers, are almost certainly on most peoples’ lists. That leaves the balance of the services to compete to stay in the race.

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