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Amazon Is Gaining Ground on Netflix in Europe, Study Says (EXCLUSIVE)

PARIS– Since launching in more than 200 countries and territories in December, Amazon Prime Video is increasingly gaining ground on Netflix in Europe, according to data compiled by Parrot Analytics.

Across 20 major European markets, Netflix content had 235% more demand, on average, than Amazon content between January and April of 2016. But during the same period this year, Netflix’s advantage was down to 45% even though it is way ahead of Amazon in terms of content volume, Parrot Analytics said. In fact, the average demand for Netflix programs fell by 32%, while demand for Amazon went up by 57% within the last year.

The findings were presented last week at the TV Leaders Summit, a two-day gathering in Paris moderated by Bruce Tuchman, the former President of AMC Global and Sundance Global, and hosted by Viaccess-Orca. For its study, Parrot Analytics used a blend of data points, including video-streaming consumption, social media, blog platforms, and online piracy across the globe.

In Germany, Amazon outperformed Netflix just a few months after launching, receiving 3% more demand than Netflix. The same trend was observed in Slovenia, where demand on Amazon was 21% greater.

In France, however, Netflix is still more popular by far, with an average demand for its content three times higher than that for Amazon. Netflix had 28 of the top 30 digital original series this year in France as of April. Between January and April, “Orange is the New Black” ranked first, while Netflix’s originals, “Beau Sejour” and “Marseille,” ranked 24th and 26th, respectively.

Amazon had two shows in France’s top 30: “The Grand Tour” (pictured above) and “The Man in the High Castle,” which took the 8th and 9th slots.

The biggest European markets for Amazon and Netflix are the U.K. and Ireland, respectively. The U.K. is also Netflix’s third-biggest market in Europe, after Ireland and Malta.

In his keynote address at the TV Leaders Summit, Tuchman predicted the decline of basic cable and TV channels and the apogee of streaming services by 2020. He said pay TV would eventually have to be streamed to provide consumers with better technology while TV channels would morph into apps to accommodate new viewing habits.

Tuchman, who sits on the board of Parrot Analytics and produced the Paris gathering for Viaccess-Orca with L.A.-based PR and marketing agency Patricia Frith Marketing, argued that streaming services’ leading edge in the quality and quantity of programming would eclipse that of pay TV because cable is losing subscribers, ratings and ad revenues.

In a separate, newly released report, PricewaterhouseCoopers forecasts that, in the U.K., revenue from streaming services such as Amazon and Netflix would overtake theatrical box-office sales by 2021.

Revenues from SVOD services will grow by more than 30% to reach $1.79 billion by that year, the report predicts. Consumer spend on streaming services is set to surpass physical home video, DVD, and Blu-ray by next year.

PwC said revenues from entertainment and media the U.K. would grow from $79 billion in 2016 to $92 billion by 2021, turning the U.K. into the second biggest market, behind Germany, in Europe, the Middle East, and Africa.

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