Amazon on Monday reported a record competition-shattering performance during the past Christmas holiday, adding more than three million Amazon Prime members last week alone.
Holiday sales of Prime devices more than doubled last year's record number, the company said. The Prime Now program, which offers free two-hour delivery in 20-cities across the country, broke records on Christmas Eve, while Prime Video views more than doubled over the holiday, and Amazon streamed a record number of songs through Prime Music.
Amazon is tapping into two growing consumer trends. The first is the understandable desire for expedited shipping, especially during the holiday crush. And, by including access to Amazon's streaming services in Prime, the company is also tapping into the growing demand for flexible access to media and entertainment, particularly among younger consumers.
The record-setting week included huge increases in sales of Amazon's content delivery devices, including tablets and set-top boxes Amazon noted. The increased sales of those devices likely contributed to a record number of viewers of Amazon's exclusive video and music content. The new Fire tablet, the Amazon Echo and the Fire TV stick were three of the top-five items most ordered on Christmas Eve.
Amazon’s gross merchandise value in the US may surpass US$100 billion in 2015, making it the third largest retailer in the country. Bundling the music and video services with the Prime membership Amazon for Fire tablet and Amazon Fire TV set top box users just helped the company use brand loyalty to drive demand for its increasingly powerful share of entertainment content.