Amazon has recently announced that it will be introducing new subscription options that its customers can choose from for its Amazon Prime Service in the near future. Whereas before, Amazon only offered its customers the option to pay for access to its full Prime service, which includes video streaming, free two-day shipping on orders, music streaming, and more services, potential customers will now also have the option to pay a monthly subscription fee for access. Amazon will also be introducing the option to pay solely for specific services from that original package, such as the video streaming service, priced at a rate of $8.99 per month. In addition, they will be adding programs to their video streaming service that are not accessible through other companies with similar services.
I believe that Amazon’s decision regarding its Prime services is a good example of how it and other businesses are being affected by the Long Tail mentioned by Chris Anderson. In his article, Anderson mentions that in the past, due to limitations on physical space for merchandise, companies within the entertainment industry would primarily offer solely entertainment that was considered a “hit” on a large scale. With the advent of the internet however, these companies, Amazon included, are able to make more of a profit by providing access to a much larger variety of entertainment outside of the hits. With the introduction of these new payment options, I believe that Amazon is attempting to make more use of the Long Tail than it has through its normal services. Amazon’s previous service model for Prime could be considered inefficient due to the fact that it required customers to pay for all of the services available for an entire year up front. This made these services- in particular its video streaming service- much less accessible to the general public, and thus made it harder for Amazon to compete in certain industries with other popular or similar services, such as Netflix or Hulu. The new payment options provide their customers with more freedom to decide how they wish to receive their entertainment and services. This allows Amazon to gain more use out of the Long Tail by making its content far more easily accessible to a larger audience than before.
Amazon’s decision regarding its Prime service also displays some of the elements mentioned by Anil Dash. In his article on Rebuilding the Web we Lost, Dash mentions that some popular social networks and apps have become inflexible and arrogant due to their successes and that in order to become more successful, companies need to move away from that mindset. Through these recent changes, Amazon is showing that it seems to understand this point fairly well. Dash also mentions that the insularity of some companies is working against them in the long run by limiting their view of the industry and their markets. He mentions that newer companies can avoid this issue by broadening their appeal to include more prospective users at an earlier stage. I believe that Amazon is attempting to reach a similar goal through its Prime services.
http://www.nbcnews.com/tech/tech-news/amazon-takes-aim-netflix-monthly-prime-membership-n557676