At the beginning of the 2010s, Amazon was the most trailblazing company in the global market; it was a colossus. Yes, tech giants were also showcasing their incredible global reach, but throughout Europe, Amazon became the central hub for those looking to do their online shopping.

Once they became the spearhead for all things online commerce, Jeff Bezos set his sights on other areas of media and entertainment. In 2024, Amazon’s sales were close to $800 billion and accounted for over 12 per cent of all online transactions!

Moving closer to digital dominance

In the US and the UK, the rise of streaming platforms and digital entertainment has eroded the market share of traditional providers for nearly two decades, a trend that is now increasingly visible in New Zealand. It’s something that is not relenting; legacy media are pulling out all their tricks just to keep up with this pace. It’s become more prevalent in the last 5 years or so, with consumer demand shifting significantly to streaming sites like Netflix and Apple TV and away from traditional channels and live content.

We’ve seen it happen on a global scale in the world of casino gaming too. Online platforms that have been able to establish themselves in this market have eaten into the market share of conventional casinos that have been the dominant force in the market for over half a century in some cases.

The convenience and cost-effectiveness of online casinos in comparison to their conventional counterparts has resulted in Kiwis following a similar trendline to what has been noted in the UK and US, with more people looking to do their gambling online rather than in a conventional setting.

An online casino in New Zealand operates just as online casinos do across the ditch and beyond. Still, the convenience, quality of marketing, and cost-effectiveness of offering multiple casino promotions have all helped create an industry that challenges the status quo by tapping into this digital shift. It’s this underlying ethos that has acted as a springboard for Amazon as it expands into the Kiwi market.

It’s a streaming world

A decade or so ago, if there were a film or TV series that our colleagues couldn’t stop talking about, it’d be a title that was likely on terrestrial or cable television but nowadays, it’s the battle of the on-demand services. Simply being signed up to all of these streaming sites to be able to watch their exclusive content is becoming more expensive with each passing month, especially with rising membership fees and multiple ad-free tiers.

However, it has created a digital rush, where the likes of Apple TV, Amazon Prime, and Netflix are spending millions of dollars on their projects and can churn out more innovative designs and ideas compared to localised television. The industry is heavily competitive and the fact that the rights for certain shows and movies can expire and be transferred from one site to another means that consumers will often have to subscribe to multiple providers to be even able to watch a whole series of movies.

As the streaming wars intensify, platforms are scrambling to appeal to audiences that may feel left behind. With people over 55 feeling increasingly marginalised by the smaller number of options they have available on modern TV, Amazon Prime has harnessed the same approach that worked so well for Netflix and Disney+; they’ve made their TV series, documentary, and film libraries a whole lot bigger and have padded out their catalogue with many older ‘classic’ titles.

Multi-faceted deals

Amazon has portioned off some of its immense capital to spend big on movie and TV productions, but they have also used this capital to bolster its promotional strategy, too. Their ad-supported tiers from 2024 were a significant shift; they were cheaper, which meant you could sign up for a fraction of the price, and the adverts were not actually that invasive or disruptive. It was actually the reason I signed up.

Amazon uses Prime Video as a hub to broadcast the rest of its vast scope of business. Full sign-ups are pricier, but they bundle together free shipping for internet purchases, free subscriptions to Apple Music, and knock-off deals for cloud storage. Crucially, this is a package that no other streaming company can offer. All their packages revolve around media and entertainment.

A unique Kiwi market

Unlike the UK, US, and Australia, Amazon does not have a strong foothold in the New Zealand market. Although Kiwis can order from Amazon’s Australian site, New Zealanders have often pushed back against the idea of the company’s presence permeating the Kiwi economy.

A 166 per cent leap is not a figure to ignore, and although some of this dramatic increase has ridden the crest of the wave of a post-COVID pump, that only goes a small way in explaining it. The last two years have seen explosive growth: for many Kiwis, the first introduction to Amazon has been through the recent new and improved Prime Video.

Amazon has been pumping considerable amounts of money into their Prime originals, with star-studded casts and limited series padding out their online catalogue. The success of shows such as Fallout, The Boys and Invincible (to name a few) has helped raise their profile in the online streaming space, alongside Netflix and Apple TV. As long as this market continues to grow and Kiwis form a greater allegiance with Amazon’s brands, Prime could be the new disruptive influence that gives the big streaming giants a bit of a headache Down Under.

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Categories: Articles, Business

Tags: Amazon, new zealand, Prime Video