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Amazon, Hulu Gain Ground on Netflix in Customer Satisfaction

Survey finds rivals are closing gap with Netflix in terms of satisfaction, but market leader still has advantages

January 31, 2017 | Advertising & Marketing | Video

Netflix continues to receive top scores from subscribers, but rivals Amazon Prime Video and Hulu are closing the gap, a new study finds.

US Internet Users Who Are Very Satisfied with Amazon Prime Video, Hulu and Netflix, Nov 2014-Nov 2016 (% of respondents)

A UBS survey of consumer attitudes toward subscription video-on-demand (SVOD) services found that Netflix, which in 2014 had a significant lead over Amazon and Hulu in terms of overall customer satisfaction, now scores just slightly ahead. The narrowing gap between the services reflects improving scores for Hulu and Amazon—Netflix’s score has held essentially steady over the past three years.

While customer satisfaction scores are increasingly similar for all three, Netflix still has an edge in a variety of measures tracked by the survey.

When UBS asked US internet users about whether they like or dislike various aspects of SVOD services, Netflix outscored its rivals in several key areas, including price and the absence of ads. Perhaps most noteworthy were the high marks given to Netflix for its original programming; nearly half of respondents said they enjoy this aspect of the service, compared with 35% for Hulu and 33% for Amazon.

Features that US Internet Users Like About Select Subscription Video-on-Demand (SVOD) Services, Nov 2016 (% of respondents)

Netflix has established itself as a major producer of TV programming. In 2016, it received more Emmy nominations than ABC, CBS or NBC. But Amazon notched a notable victory in the realm of original content this year, scoring Academy Award nominations for two feature films: “Manchester by the Sea” and “The Salesman.” Meanwhile, Amazon and Netflix each earned five Golden Globe nominations for TV series.

eMarketer estimates that close to half (46.8%) of US internet users will watch video content via Netflix at least once per month in 2017—the largest audience of any over-the-top (OTT) SVOD service. By comparison, Amazon will be a considerable way back with 31.2% penetration.

—Jeremy Kressmann

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