Amazon's Rumored OTT Plans Could Entice Small, Mid-sized SVODs, TDG Says

Small and mid-sized video providers likely will jump onboard Amazon's rumored plans to offer third-party video services as part of its Amazon Prime Instant Video offering, because they're the ones facing the biggest travails in setting up their own distribution networks, wrote The Diffusion Group Senior Adviser Joel Espelien in a blog Wednesday. Being an add-on to Instant Video wouldn't be enticing to a major multichannel network since Amazon solely would be in charge of the app's home screen and such related issues as placement of third-party content and user experience, TDG said. The provider also would cede to Amazon the consumer billing relationship and control of consumer usage data from the app, it said. "It is difficult to imagine a large video provider (i.e. HBO, Hulu) getting very excited about Amazon’s offer. These providers have their own brands and their own user bases, and are understandably going to be pretty reluctant to hand over the keys to the kingdom to Amazon," TDG said, saying for small and mid-sized streaming video on demand providers, the chief difficulty is in building a customer base. "For these providers, a large ecosystem platform like Amazon (or Apple or Google or Microsoft) is very tempting indeed." Amazon didn't comment Thursday.