Amazon Prime Video Intrapreneurial Business Proposal (Final)

Final: Intrapreneurial Business Proposal 1
External & Internal Business Environment
Amazon Prime Video
Jessica Gold
Full Sail University
Instructor: Melissa Schumann
August 2, 2019
Portfolio III
Strategic Business Proposal: a comprehensive Intrapreneurial Business Proposal

Table of Contents
Introduction......................................................................................................................... 3
External & Internal Business Environment ........................................................................ 4
Strategic Scanning .............................................................................................................11
Solving a Need in the Market........................................................................................ 20
Implementing Innovation.......................................................................................... 26
Conclusion ................................................................................................................ 36
References ......................................................................................................................... 38

Introduction
The purpose of this report is to identify a business opportunity for Amazon Prime Video based
on its current situation in the market, competitors within the industry, and customer perceptions
of the company and its video streaming on demand service. A mixture of qualitative and
quantitative research is used in this report with primarily online secondary resources used
gathered with primarily online resources used including blogs, Amazon’s corporate website,
social media, tech online magazines and websites, Statistica, and Reuters. Analyzing the
information gathered through the diverse resources on Amazon Prime Video’s position including
company culture, competition, and customer feedback trends; I have developed an innovative
recommendation based on a customer pain point or need that will improve video streaming user
experience. I found customer feedback trends to focus on the interface and the cluttered
appearance, and overwhelming feel of the design making it difficult to choose what to watch or
make them exit the platform all together. I have developed a creative solution for this customer
frustration and or need for a more organized, simplified, personalized experience through the
interface design and software to benefit both our customers and our company.

External & Internal Business Environment
Amazon Prime Video
Description of The Business Organization
Amazon Prime Video, al he so known as Prime Video, is an internet video on demand
service developed, owned, and operated by Amazon.com, Inc., a multinational innovative
technology company focusing on e-commerce, cloud computing, digital streaming, and artificial
intelligence. Prime Video, a division of Amazon.com, Inc., (Parent Company) is a publicly traded
company (NASDAQ: AMZN) founded by Jeff Bezos July 5th, 1994. Several years later, Amazon
Prime Video debuts on Sept. 7th, 2006 initially under the name Amazon Unbox in the United
States. Later, rebranding to Amazon Instant Video, and eventually to what we call Amazon’s
video on demand services today, Prime Video or Amazon Prime Video with the help of its
expanding video library, Prime Video membership addition with the development of prime, and
the two eventually being bundled together, in addition to offering student discount prime
memberships, and heavily investing in Amazon original series, such as the Last Tycoon, Bosch,
The Man in The High Castle, and The Marvelous Mrs. Maisel (Marshall, 2019).
Prime Video competes in the internet industry with focus on video on demand and digital
distribution as a business to consumer (B2C) company. According to Statista.com, “As of 2017,
Amazon’s video on demand service, Amazon Prime Video, occupies the second position in the
growing video on demand industry with around 26 million subscribers in the United States.”
(Statistica, 2019).
The video on demand industry is rapidly expanding worldwide. Both qualitative and
quantitative data support trends in online streaming and cable cutting. More people are

increasingly moving towards video on demand services. In 2017, “About 6 in 10 young adults in
the U.S. primarily use online streaming to watch TV” (Rainie, 2017). In UK markets, younger
viewers are watching a third less traditional television and now turn to online streaming services
for their entertainment (Bond, 2017). Quantitative research shows adult streaming trends as well,
“The Interactive Advertising Bureau (IAB) today released “The Changing TV Experience:
2017,” a comprehensive study revealing that most U.S. adults (56%) own a Streaming Enabled
TV, a 56 percent rise from just two years ago, a fundamental shift in the way that Americans
watch television.” (IAB, 2017).
Threat of New Entrants
One of Amazon Prime Video’s biggest threats is increased competition. With more
broadcasters creating video on demand services, and some offering their services for free with
limited commercials such as the CW. In addition to increased competition, threats from current
competition meaning threats of substitutes is an additional concern.
Threat of Substitutes
Netflix, Hulu, YouTube, DirectTV Now, and Sling TV are just a few examples of direct
competition Prime Video currently faces. With a vastly growing video on demand industry
brought on by changes in technology, cord cutting trends, and consumer tv watching behavior,
the substitution threats continue to increase for Prime Video.
Analysis for Direction of the Industry
“For many years, streaming video didn’t threaten traditional TV: the files involved were
extremely large, and they required significant bandwidth and network capacity.” With changes in
broadband availability and speed, streaming video became a more realistic and convenient option
for consumers. This change also led to technology trends creating ways to easily stream video

content from multiple devices, such as Roku streaming sticks, Fire TV’s and Fire TV sticks,
tablets, smart phones, smart TVs, laptops, PlayStation, and more. “Increasing use of internet and
increasing number of online video streaming websites are major factors driving growth of the
global video on demand market. In addition, factors such as time-shifting view, consumer reach,
and best possible experience are also driving demand for video on demand in the market
globally.” (MarketWatch, 2019).
“Cord-Cutting' in the US is the act of customers switching from traditional cable media to
online streaming services. (Global State of Mobile Networks, 2016). In 2017, US Cable
companies saw the steepest loss with 2.4% on record switching. The trend of customers seeing
the pricey cable options as less appealing considering the variety of online viewing options at
more affordable prices has also led to more consumers moving away from tradition cable options
for viewing (Bradshaw and Bond, 2017). “The study, from Adobe Digital Insight, revealed that
two-thirds of consumers under 35 regularly use online streaming services, and cutting from
traditional broadcast and cable TV continues to grow. A quarter of all viewers under 35 watch
content exclusively via streaming. Another 30 percent of those under 35 said they expect to
stream content exclusively within two years.” (Laposky, 2017). This shows there is a strong
customer demand for video on demand services and that the industry is continuing to grow.
“Netflix, Hulu, Amazon Prime Video, and other Internet-based digital over-the-top (OTT)
players have matured rapidly—and they’re stealing a meaningful share of business from
traditional cable and satellite TV companies. We expect OTT to grow from approximately 10%
of total US video industry value capture in 2014 to 20% by 2018, a percentage that represents
more than $30 billion in revenues.” (Rose, 2016).

“With so much competition popping up every day, some companies have pushed the
boundaries even further by creating their own productions, as we have seen with Amazon
Prime and Netflix.” (Rose, 2019). Predictions for the future of VOD include growth in virtual
reality and augmented reality experiences, and new innovative devices creating better user
experiences. The streaming industry is additionally moving towards in house studio content
creation with Amazon, Netflix, and Hulu originals all making waves in the entertainment
industry.
Threats to the Overall Industry
Risk of free streaming services through pirating services and or price competition
amongst similar platforms are threats to the overall industry. Internet Piracy is an ongoing
problem that has “been plaguing the industry.” (Rose, 2019). (Pineda, 2018). Certain countries
banning OTT services are also a threat to the overall industry growth with there being regulations
and legal challenges against the technology sector and certain services including Prime Video
being banned/blocked in certain territories. Chinese government has brought out laws restricting
foreign players to operate without using a platform controlled by a Chinese-owned and licensed
entity. (Ming, 2017). “Regulators have moved aggressively to curtail what the country’s more
than 750 million internet users can or cannot do online. While Beijing has shut out access
to Google and Facebook in the past, new restrictions introduced this year have been some of the
strictest ever, according to experts.” (Ming, 2017).
“The US TV industry is quickly transitioning from a relatively harmonious ecosystem
based on mutual dependency to one in constant change. To capitalize on the new online and
mobile pathways and to thrive in an increasingly combative environment, industry participants
need a fresh approach.” (Rose, 2016).

Observed Business Opportunities
The internet has created a new experience for watching videos. “Currently, 70% of
people between the ages of 18 and 34 watch television on the internet.” (Pineda, 2019). Business
opportunities in the industry include innovative streaming devices, original content produced in
house, and greater convenience in watching videos due to growth in internet users and smart
devices creating a greater need in smooth applications and user experiences to focus on in the
video streaming industry.
Amazon Prime Video Services Offered
Amazon Prime Video, a video on demand streaming service offers a large library of
television shows and movies including Amazon original content. Options to subscribe to over a
hundred premium channels and select sporting events are also included in Prime Video.
Depending on location, the content offered can differ. In the United States, Amazon Prime Video
is bundled with Amazon Prime, meaning their video on demand services are included in the
membership cost. Additional add-ons from our large assortment of channels including sports
channels and events can be purchased, as well as rental and buying options for videos.
Consumers have the ability to purchase an entire series, or a recent film just released on DVD.
Student discounts are another perk included in Prime thereby prime video memberships making
the cost affordable and the grouped bundle with vast benefits appealing.
Prime Video offers an affordable membership price bundled with all the perks one
receives with Prime. Compared to competitors Prime Video being bundled with Prime offers a
lot of perks for the price. In a current global recession where many customers spending budgets

are tight, services like Amazon Prime Video, included with an Amazon Prime subscription is
more attractive than costly traditional media subscriptions (Jerde, 2018).
Competitors continuing to raise their prices, while Amazon Prime Video remains the
same, and even offers student discounts can impact streaming consumers leaving more expensive
platforms for Prime Video, with consumers becoming less trusting and loyal to companies that
continuously increase prices. Other companies price increase could leave more opportunity for
subscriber growth and increased customer loyalty for Prime Video not increasing prices.
When it comes to pricing Prime Video is not expensive compared to similar competitive
services, especially with the service being bundled with Prime and all the perks one receives as a
Prime member, including convenient free two-day shipping.
Overall Amazon Prime Video ranks high amongst its competitors and is well respected in
the online streaming video industry using number of subscribers, financial security, brand
identity, content library size, bundled options, pricing and discounts as well as global reach to
support Prime Video’s position. Although, well positioned amongst similar services, weaknesses
leave Prime Video vulnerable. Improvements are needed in platform and application systems to
enhance user experience emphasizing personalization, convenience, and organization.
Amazon Prime Video Business Opportunities
Devices: Opportunities for Amazon Prime include more third-party entry points for
watching their platform on, such as smart TVs, devices, and projectors. Currently there are many
smart TVs featuring Amazon Video, as well as streaming devices, like Roku, and Apple TV.
Opportunities with 5G: Mobile opportunities and faster streaming speeds brought on by
5G growth also create new opportunities to reach commuters and people with hectic lifestyles

who want to stream video content on the go with better quality streaming and increased cellular
usage for streaming “Zero buffering, no waiting.” (McFerran, 2018).“5G enables much higher
throughput – that is the bandwidth available to each connection, and the speed at which data is
sent or delivered. The average speed on our 4G network today is 30Mbps, and 5G can increase
that even further. With higher bandwidth comes higher resolution video." (McFerran, 2018).
User Interface: Another opportunity for Amazon Prime Video lies in improvements in
profile features and user experiences. Customers feel profile options are an important feature
lacking in Amazon Prime Video’s platform, with competitors like Netflix and Hulu offering
profile options and even child-friendly profile options. Personalization, such as profiles, is an
important factor in positive user experience. Adding a profile feature and enhancing the platform
with video previews and more content suggestions would improve Prime Video’s appeal, helping
with competition amongst similar services.
Brand Awareness & Social Media: Opportunities to create stronger brand identity
through social media should also be considered. According to Forbes, “Almost 40 percent of
users are following their favorite brands on social media and 1 in 4 users are following brands on
social media from which they might make a purchase” (McCue, 2018). The parent company,
Amazon.com has one of the strongest online presences. “When asked specifically about Amazon
Prime Instant Video, 23 percent of respondents talked about Prime shipping instead.” (Schneider,
2017). Proof of Netflix's superior platform brand identity: Users talk about "watching Netflix" as
opposed to watching a specific show on Netflix. They often first decide to binge a Netflix show
and then pick the series. “In other words, the platform is driving the content” (Jerde, 2018).
Amazon Prime Video lacks in identity with few consumers referring to watching Prime Video
when compared to the number of people using the phrase binge watching on Netflix or watching

Netflix. Netflix also has a very strong online presence with creative content on all major social
media platforms promoting their content and gaining a large following.
Research& Development: Opportunities for experimenting with technology, heavily
investing in content, platform improvements, applications, research and development, and
marketing strategies are all possible with Amazon.com, Inc.’s estimated net income being an
estimated 10.1 Billion or $10,073,000,000 (AMZN Balance Sheet, 2019). Amazon “has and will
remain one of the world’s fastest growing companies. Since 2006, the online retailer has grown
an average of 31% year over year, with no end in sight” (Liang, 2018). Prime Video is in a
financial position to invest in innovative ideas to improve customer experiences.
Strategic Scanning
Customer Analysis
Amazon Prime Video has a distinct target market. Who are the Amazon Prime Video
customers? The demographics for our company, Prime Video include both males and females
aged 18-34 in the low- and medium-income brackets. “During the March 2017 survey, it was
found that 39 percent of Prime members were aged between 18 and 34 years.” ("U.S. Amazon
Prime user age distribution 2017 | Statistic", 2019). The target consumers for Amazon Prime
Video are geographically located in North America, Europe, Australia, Latin America, Middle
East, and Asia. Prime Video customers need and or want video content entertainment, they are
TV and Movie lovers who enjoy diverse content with less restrictions. Prime Video consumers
desire the convenience and comfort of streaming video services that give them the flexibility to
watch when and where they would like at an economical cost, where they can feel like they are
getting a good deal and not over spending. Amazon Prime Video gives consumers sought
benefits, being able to easily and conveniently watch a series, or movie from the comfort of their

home or on the go on a countless number of devices, with the flexibility to quickly pause, and
play with the touch of a button, or a voice command and having access to entire seasons allowing
consumers to binge-watch all their favorites without any commercials. Customers truly value
convenience, comfort, and flexibility now more than ever with their hectic lifestyles and with the
rise of innovative technologies impacting consumer behavior.
Subscriber Expansion
Figure 2Internet World Penetration Rates by
Geographic Regions-March 2019 (M., 2019).
Using the internet usage and penetration statistics, Amazon Prime Video has the business
opportunity to expand geographically if more focus as far as content and marketing goes into specific
locations yielding the greatest potential for subscriber expansion. Prime Video can focus on campaign
strategy efforts to expand subscriber growth in Australia and Latin America with an increasing number
of internet users in both specific geographic areas. An estimated 4,312,982,270 people are reported as
internet users as of December 31, 2018 on the world internet usage and population statistics, with the
Figure 1 World Internet UsageStatistics. (M., 2019).

highest penetration rate being North America (94.3%), Europe (81.4%), Australia (68%), and Latin
America/Caribbean (66.5%) (Internet Usage Statistics, 2019).
Based on the company’s strong emphasis on diversity and global reach, it is vital for
Prime Video’s content to cater to many cultures and work on expanding in areas with great
potential based on internet penetration statistics. Variety will be key for Amazon Prime Video to
compete amongst similar services.
Competition
Major competitors in the video on demand streaming industry offering similar services to
Amazon Prime Video include Netflix, Inc., Hulu, HBO Go, CW, DirectTV Now, Sling TV, and
more. Comparing Prime Video to its number one of its top competitors, Netflix, Inc. it is evident
that consumers feel Netflix has a superior platform brand identity which certainly plays to a
major strength of the company with growing subscribers. Users talk about "watching Netflix" as
opposed to watching a specific show on Netflix. They often first decide to binge a Netflix show
and then pick the series. “In other words, the platform is driving the content” (Jerde, 2018).
Amazon Prime Video rebranding including changing names several times throughout the years
has created a less clear platform brand identity. In addition to brand inconsistency; the actual
platform can feel overwhelming as far as user experience goes with the user interface for the
platform lacking better organization and many features that help Netflix’s platform stand apart in
superior user experiences, such as personalized profiles, including child profiles, automatic video
preview clips, new original content previews featured upon opening application, and
personalized content based on past viewing, what is currently trending now, recently added,
popular on Netflix, continue watching, my list, and categorized genre lists making it much easier
to navigate their platform. Although, Netflix’s focus on original content has helped the company

with subscriber expansion, their frequent subscription price increases have not helped with
maintaining a cost efficient entertainment subscription option, with lower income families
finding their services to now be unaffordable, and people who can afford the service questioning
the value now that it has become more expensive making consumers think twice about
maintaining subscriptions they have had for years. One recent popular New York Times piece
titled, “Netflix Stock Tumbles as U.S. Subscribers Decrease After Price Increase further supports
this finding. With competitors such as Sling TV and DirectTV Now live sporting events is a
major strength, not yet offered fully for Prime Video, with Prime offering certain games for free
in recent years, and growing our library with athletic related content, like the NFL Films
productions to help draw more fans in and certain Thursday Night NFL games being offered free
to live stream. When comparing our company, Amazon Prime Video to its competitors, it is well
supported that we have a lot to offer at a lower price than many of our competitors making
consumers feel they are receiving a lot for what they are paying. Benefits include having a large
variety of video content with an ever-growing content library featuring Amazon Originals,
options for add-on channels, and exclusive sporting events and films. Prime Video’s superior
value comes from being bundled with several benefits in many countries as part of what is
included in a Prime membership; which includes free two-day shipping, next day orders,
exclusive deals, Prime Day access, music, unlimited reading, and more. Offering student
discounts and six-month free trials also aides in Prime’s appeal with being a great value. Based
on these findings, maintaining the image of being a great value compared to other competitors
constantly increasing their prices, helps Amazon Prime Video increase brand consistency thereby
increasing brand loyalty. If Prime Video can maintain its economic position of being a great
value; while consumers are frustrated by Prime Video’s competition frequently increasing

pricing; consumers are more likely to move towards a more affordable streaming video option
like our company, Amazon Prime Video (Team, 2017). Business opportunity to grow subscriber
base also lies in marketing efforts for original content and offering more sporting event and
series than similar services. Real business opportunity lies in striking a deal with sports
broadcasting opportunities such as the NFL and Premiere League for more streaming game
rights as well as a sporting event channels to include both female and male sporting events.
Sports fans and business travelers could find this opportunity very appealing. As a company we
have shown clear intent on this front and need to work towards further development to become a
sports broadcaster and gain more rights in the industry. Video quality, convenience, cost
effectiveness, and popular streaming devices contribute to the appeal of online streaming
services and cord-cutter trends, as well as trends in original content being produced in house by
streaming video services (Young, 2017).
Unique Selling Proposition
 Online Convenience Value: with all the benefits being offered in a Prime
membership (Video, Music, Books, Shipping, Exclusive Deals, etc...) and its
affordable pricing options including student discounts options.
 Prime Video delivers an entertainment value destination unlike any other – fast,
reliable, personal, innovative, and original.
With a growing threat of competition in the industry; what sets Amazon Prime Video
apart from its competitors? Several factors actually make Prime Video a worthy rival. Amazon’s
innovative technology is one such factor improving convenient viewer experience with voice
command options when paired with Fire TV sticks, Fire TVs, and echo devices, along with
Amazon Original content, sporting content, and in several countries Prime Video is bundled with

a Prime membership with all of the benefits. Free student trials and discounted subscription
prices also give Amazon an edge over other competitors. All of these factors create strong brand
value.
Amazons focus on innovation and artificial intelligence helps Prime Video stand out!
Amazon.com, Inc. invests heavily in innovative technology and research and development.
Amazon’s Fire TV and Fire TV stick both impact the number of Amazon Prime Video users and
show the company’s focus on technology and customer convenience. “Streaming Enabled TVs
have changed the way Americans watch television,” said Chris Kuist, Senior Vice President,
Research and Impact, IAB.” (IAB, 2017). Devices continue to be developed featuring Amazon
Prime Video. Increase in Amazon devices that feature Prime Video, such as Fire TV, Fire TV
sticks, and of course the continued trends in Roku devices impact the number of subscribers with
convenience being essential in technological consumer trends with Amazon devices creating
voice command hands free opportunities and convenience, incorporating Alexa and all of the
smart devices including Echo dots and Fire TV devices. Increase in newer technologies
developed by Amazon creates greater interest in video streaming and using Prime Video
specifically with the service being a promoted feature of using Amazon smart devices.
Originals
Amazon Originals also drive subscriber growth, with the company focused heavily on
investing in original content and research and development. The documents shared with Reuters
show that about” one in four Prime signups were driven by Prime Originals, like Man in the
High Castle and Transparent, between late 2014 and early 2017” (Donnelly, 2018). This supports
the role Amazon Originals play for consumers joining and or maintaining their Prime Video
memberships. Prime originals help Amazon stand out amongst other competitors with exclusive

content one can only watch through our streaming video service. With innovative devices to
experience Prime Video with and an ever-growing library featuring exclusive Prime Originals
user experience becomes personalized, faster, more convenient, innovative and original creating
an experience unlike any other streaming video on demand service. Management. The Prime
Video team has offices in over 15 major cities across the globe. With opportunities in Europe,
Asia, North and South America. Currently SVP, business and corporate development and digital
entertainment, Jeff Blackburn leads the teams responsible for Amazon's content and advertising
businesses “including Prime Video, Amazon Studios, IMDb and Amazon Music. Mr. Blackburn
is also the head of Amazon's M&A, investments and strategic business development efforts
worldwide.” (Officers and directors: Amazon.com, Inc., 2019). He has strong background
knowledge, with over 21 years of experience within the company building Amazon where he
reported to Jeff Bezos and part of Amazon's Senior Leadership Team since 2006. The Prime
Video management team consists of directors and heads of various roles including business and
technology roles, marketing, acquisitions, international management, recruiting, software
development, customer engagement, social, brand, Prime Video search, Cyber Defense, Video
Licensing, Content Marketing, and more. Greg Hart, part of the management team for Amazon
Prime Video currently, Vice President of World Wide Amazon Video has been working various
roles within Amazon for over 22 years. Previously, Greg was Vice President of Amazon Echo &
Speech where he built and lead the product development, UX and cloud software organizations
that delivered Amazon Echo, the Alexa skills kit and voice services (Hart, 2019). He also worked
various media related Director roles involved with DVDS, games and software, books, and other
medias. He started out within the company first working in marketing and product management
related roles.

Reviewing our current Prime Video management employee resumes, it is well supported
we often promote from within and value loyalty and experience within the company. Stability at
the top is considered one of the key reasons for Amazon’s success according to our CEO, Jeff
Bezos. (Kim, 2019). Amazon is known for seeing very little turnover “among its most important
power players, with many of us having been at the company for years, if not decades — a point
Bezos previously highlighted as one of our company’s strengths.” (Kim, 2019). The board of
directors consists of successful professionals with various backgrounds and skills. Amazon board
of directors include the following:
Board
icas and Chief
Operating Officer of Starbucks Corporation.
Pickering Hale and Dorr LLP since July 2003. She has held numerous positions in the U.S.
government, serving as Deputy Attorney General of the United States, General Counsel of the
Department of Defense, Assistant to the Secretary of Energy, and a member of the bipartisan
National Commission on Terrorist Threats Upon the United States (Officers and directors:
Amazon.com, Inc., 2019).
Tech at Cornell University since 2012, and has worked for Cornell University since 1988 in
various positions (Officers and directors: Amazon.com, Inc., 2019).
No experience necessary, a multimedia joint venture that Ms. McGrath formed with Sony Music

Entertainment. She also served as a Chair and Chief Executive Officer of MTV Networks
Entertainment Group worldwide, a division of Viacom, Inc., and was part of the original founder
and launch team for MTV (Officers and directors: Amazon.com, Inc., 2019).
of its board
of directors for PepsiCo, Inc., a multinational food, snack, and beverage company. She held
leadership roles in finance, corporate strategy and development, and strategic planning (Officers
and directors: Amazon.com, Inc., 2019).
J. Rubinstein: Mr. Rubinstein was co-CEO of Bridgewater Associates, LP, a
global investment management firm. Previously, Mr. Rubinstein was Senior Vice President,
Product Innovation, for the Personal Systems Group at the Hewlett-Packard Company (HP), a
multinational information technology company, from July 2011 to January 2012. He also
previously worked for Palm Inc., a smartphone manufacturer as CEO, President, and Chairman
of the board of the company until its acquisition by HP in July 2010. Before this, Mr. Rubinstein
worked for Apple, Inc. as a Senior Vice President (Officers and directors: Amazon.com, Inc.,
2019).
from April 1998 to December 2006, and was Chief Executive Officer from April 1998 to
December 2005. Before this time, Mr. Ryder worked in several roles at American Express,
director of Starwood Hotels & Resorts Worldwide, Inc., and Chairman of the Board of Directors
at Virgin Mobile USA, Inc. from October 2007 to November 2009 (Officers and directors:
Amazon.com, Inc., 2019).
Table, a non-profit, from April 2013 to March 2019. She served as senior advisor to the Bill and

Melinda Gates Foundation, a private philanthropic organization, and worked in many roles at
Microsoft Corporation (Officers and directors: Amazon.com, Inc., 2019).
a glass and materials science innovator. He has held leadership roles in financial management,
business development, commercial leadership, and general management across many of
Corning’s businesses and technologies since joining the company in 1983 (Officers and
directors: Amazon.com, Inc., 2019).
Solving a Need in the Market
MissionStatement
What is Amazon’s Mission Statement? When Amazon.com launched in 1995, it was with
the mission “to be Earth’s most customer-centric company, where customers can find and
discover anything they might want to buy online, and endeavors to offer its customers the lowest
possible prices” (About Amazon, 2019).
Corporate Culture
Our website states that “Our Leadership Principles empower us to be owners and
innovators while maintaining our customer centricity. We’re willing to take risks – innovating
requires failing. (Our Culture, 2019). Shared attitudes include a focus on customer trust, long
term-value, helping out where ever is needed, “We never say “that’s not my job." We are all a
part of a team, we act on behalf of the entire company, beyond just our own team. We value
invention and simplicity as a team, and we focus on delivering results (Leadership Principles:
Amazon, 2019).
As a company that practices being leaders, innovative, and one of the most customer-
centric companies; our corporate culture differs from many, incorporating a culture of high

standards. Our distinctive “organizational culture fosters a performance driven environment that
fires up its employees to innovate in pursuit of an outstanding, continuously-improving customer
experience. Our brand identity is based on delivering that same disruptively innovative customer
experience.” (Yohn, 2018). CEO, “Jeff Bezos prioritizes culture, in particular with his "Day
One" mantra, that reinforces that our company will always act like a hungry startup. “Bezos
believes this work culture will help us "remain vigilant and maintain a sense of urgency." As
employees of Amazon Prime Video many of us feel that once we’ve tasted high standards, there
is no going back.
Prime Video values employees who take initiative, are creative risk takers, passionate
about their work, and are goal oriented. Glassdoor supports that employees find the work
environment challenging, filled with fast paced learning, with a start-up mindset that still acts
with the same urgency and work strategy. Glassdoor reviews reinforce that as a company we
work very hard, and not all positions are ideal for work-life balance according to several of the
reviews, but if you like to work along other hard workers, and are passionate about your work,
innovative, and a leader than this is an ideal company culture for you. Amazon is also moving
towards trends in greater remote access positions and flexibility in working from home, focused
on results more than being under a set roof/location. Glassdoor shows 95% of the 146 approve of
CEO, Jeff Bezos and 74% would recommend working for the company to a friend. Many
reviews suggest that you can learn a lot in a quick amount of time, and that it can be a
challenging environment that doesn’t hold your hand, empowering employees to take initiative
and be innovative.
Every organization is different, so its culture should be too. “Standards that seem
unreasonably high are the tools by which Amazon managers drive their teams to deliver ever-

increasing levels of service to customers.” (Yohn, 2018). There’s a unique culture that’s right for
each organization; and Amazon Prime Video aims to hire employees that thrive within their
company culture sharing similar values, work ethics, and attitudes. Many at Amazon Prime
Video agree, “it's worth it to Invest the time to define and nurture a culture that gives you a
competitive advantage” which is what our company continually strives for (Thompson, 2018).
“It is the fusion of Amazon’s culture and brand that powers the company. Everyone is singularly
focused on one thing: excellence on behalf of the customer.” (Yohn, 2018).
Transparency
As part of our corporate culture we tend to be as transparent as we feel is absolutely
needed, and do not reveal all financial reports or information as much as the public would like.
We release certain financial reports, including our annual report to the public and communicate
with consumers through media releases, emails, and our website. We have been outspoken about
our environmental initiatives to “be part of the new green economy and help create jobs in a
high-growth industry” wanting to invest in renewables for the company (Murray, 2018).
However, “Amazon and other large companies are coming under fire from some of the world’s
most powerful investors for failing to fully disclose data on their environmental impact. “Earlier
this year, nearly 8,000 Amazon employees signed an open letter to chief executive Jeff Bezos
demanding the company publicly report how it is preparing for climate-related disruptions. The
issue came to a vote in May as a shareholder resolution but was defeated even after winning
support from the industry’s two most influential proxy advisers, ISS and Glass Lewis.”
(Nauman, 2019).
Reports shared with Reuters revealed an estimated number of Amazon Prime Video
members for the United States, but much of the company’s statistics are not disclosed, including

the number of world-wide subscribers. In general, our company closely “holds data on all
activities including sustainability” and is known for marching to “its own drum in the realm of
reporting.” (Unpacking Corporate Responsibility at Amazon, 2018). Overall, we like many other
tech and entertainment companies lack in full transparency, but our company is transparent on
customer reviews, prices, and terms of service.
Public Perception
According to a Statista survey on U.S. consumer opinions on Amazon in general as of
March 2017; 67% of survey respondents stated that they liked using Amazon. A third of
respondents also stated that Amazon was an integral part of their life and over 38% of the
respondents feel Amazon takes the interest of its consumers seriously (U.S. consumer perception
of Amazon as a company 2017, 2019).
(Image of U.S. consumer perception of Amazon as a company 2017, 2019)
According to a study from “YouGov Brand Index, the top 10 best-perceived brands of
2017 were: Amazon, Netflix, Amazon Prime, YouTube, Google, Nike, Dawn, M&Ms,

iPhone and Apple.” (Gardener, 2018). Based on this evidence, Amazon Prime Video, and the
parent company Amazon are positively viewed by the public as a great brand, considered
likeable, providing consumers with exactly what they need, and taking the interests of its
customers seriously.
Customer Experience
The article, “3 Ways Amazon Has Raised the Bar on Customer Experience” further
supports the high level of customer service and the positive experiences customers have with
Amazon products and services including Amazon Prime Video. The article goes on to explain
how our company makes doing business with you easy, we anticipate where our customer is
going, and we let our customers explain their behavior. On Better Business Bureau, Amazon.com
rating represented by BBB’s opinion of how the business is likely to interact with its customers
is given a B+. In general, Amazon creates one of the most convenient customer service
experiences. Issues are bound to happen with such a large company, and Amazon makes the
process as simple and quick as possible with their Amazon App and website making a quick chat
possible, with a fast resolution, and a nice relatable person to chat with that keeps everything
brief, yet personalized. According to PCMag.com, pros include “excellent original content and
collection of shows from other networks. 4K, HDR, and offline capabilities. Let’s you rent or
buy movies and TV shows” (Moore, 2019).
Cons from customers are more focused on some interface clutter, and that it can be hard
to discover content (Moore, 2019). The editor’s rating being a 4 out of 5. According to
Amazon.com, Amazon Prime Video out of 93,000 customer reviews Prime Video scores 3.9 stars
out of 5. With many love all of the benefits they receive bundled in their Amazon Prime Video
membership, and compliments their customer service team, one review stating, “Everything can

be fixed, just email or call and they will do everything to make sure you get it; Prime Video has a
unique customer service set up that is nicer and more attuned to your actual situation and will
help you through any process if need be” (Amazon Prime Video › Customer reviews, 2019).
Competition Reviews
According to several review sites, Netflix, one of Amazon Prime Video’s main
competitors receives generally positive reviews with ease of use, and large viewing selection
being well noted in customer feedback. Best Company gives Netflix an overall score of 9.3 (1st
place) and Amazon Prime Video a 7.6, (2nd place) as far as video streaming companies. Using
PCMag.com to compare Netflix reviews, the company scored a little better with a 4.5 out of 5 for
the editor’s rating. Looking at customers who wrote poor reviews, trends show issues over email
wording confusion in reference to free trials and credit card issues with being charged twice, so
more of billing related issues, and positive reviews have trends in positive user experience/
platform experiences with ease of use, original content, and large selection.
Customer Need
Analyzing customer feedback trends for our company, Amazon Prime Video, and those of
our competitors, I see a real business opportunity for our company, understanding a customer
pain point for our service being a cluttered interface making finding content to watch difficult,
and evaluating feedback from Netflix, a major competitor, seeing their strengths based on review
trends mentioning ease of use, organized and helpful interface with suggestive content, and
personalized content categories, as well as multiple profile options. By updating Amazon Prime
Video’s interface using Netflix’s interface/platform as a starting point or guide for ideas to
expand upon our company can take a customer pain point and turn it into a business opportunity
improving user experience and helping us with subscriber expansion.

Business Opportunity
By creating more suggestive categories and a continue watching category to easily pick
up where you left off, automated preview clips, with Amazon Original previews featured at the
top of screen, and multiple profile options including a child profile feature we can work on
improving ease of use, with better organization, and further anticipation of user needs with most
wanting to see a clip to know whether to try the movie or series. Complaints on the interface
being cluttered making it hard to find content to watch was a common theme for the reviews on
Prime Video, and looking at reviews on Netflix, a major competitor, trends with ease of use,
organized interface, helpful content suggestions were all areas that are seen as strengths of
Netflix from consumers. Using Netflix’s interface as a starting point/guide for improvement, I
can suggest how to turn a customer pain point into a business opportunity. Using advanced
content suggestive algorithms to create more personalized categories, developing multiple profile
options, having a continue where I left off/continue watching feature, having video preview clips
automated to be able to decide within a few moments whether the video seems as if it would be
something of interest the frustrations users feel towards our service, would be lessened or
eliminated.
Implementing Innovation
After strategically considering the research done on the video on demand (VOD) market,
and the customer perception, I have developed an innovative idea on how to improve customer
experience with our service benefitting both, the customers and our company.
Recommendation

As an employee of Amazon Prime Video, using my experiences within the company, and
the research gathered on customer feedback, the video streaming market, and our competitors; I
recommend a few ideas for improving our cluttered interface in order to help customers find
content easier and feel less overwhelmed by the organization and amount of content. The
cluttered interface design being a trend for negative Amazon Prime Video customer feedback; I
feel it is an important matter to address and work to improve. The purpose of the idea is to better
organize the design, creating a more convenient, helpful feel to our users. If a design feels
overwhelming, and options are not categorized and personalized, users will not know where to
begin and will more likely to exit the platform and or website. So, to break things down or
simplify the process of making a choice and eliminate or lessen the amount a user has to scroll
through everything; I feel a design similar to a website with a drop-down menu bar with several
of categories would be ideal making sure our design is different from any other patent. Several
companies have hover design patents so we would just have to make sure ours is not designed
the same, but similar to a menu bar on a website which most people feel comfortable using.
I also feel users should be given the option to create more lists than just the one option to
“add to watchlist”. We can give customers the option to choose from popular list ideas or to
create their own, like my favorite holiday movies. The main menu will have a “my lists”
category and then subcategories will include “watchlist”, and any other lists the customer
chooses to add to organize themselves making improving the user experience through
personalization, convenience, and better organization.
When creating lists, there should be a quick search button to be able to add content and
some recommendations should also be provided to choose from. Some of the drop down menus

include originals, genres, recently watched, themes (such as witches & wizards, vampires &
werewolves, crime-solving, 60’s, musicals, dancing, football, gymnastics, time-travel, politics,
car chases, DIY, home design, etc..), recently added, coming & leaving, live & upcoming
athletic/sporting events and personalized recommendations (based on viewer history). We would
also have an in the mood box that would open up into helping customers find personalized
content based on themes of interest, time periods, characters, actors and actresses to create
personalized lists which give users the option to check all the ones they want to save on the list
or mark off all the ones they want to delete, and of course the option to save the lists to their “my
lists” section.
This recommendation also involves creating a method to easily play TV show trailer
clips. One convenient opportunity for featuring these TV show trailer clips could be to display
the option when the pop-up rectangular menu appears with adding the option to view the clip
within the pop-up menu without leaving the page the user is on; making the process more
convenient. The pop-up rectangle should also have who stars in the series or movie to help draw
in more fans and help with better connecting with the content. I think creating more of a website
design interface with more categories and multiple pages to make the amount of content in
general on each page less overwhelming will improve user experiences and improve the UI
cluttered feel that distracts most customers from being able to choose what to watch. Giving a
user too much content without breaking the options up into categories leaves too many decisions
to choose from which then creates an overwhelming feeling where the user is more likely to exit
the platform and or cancel their subscription. What can be done? Better organization with more
categories and pages can help with this. For example, for the main menu by hovering
over/clicking “Genres” this would cause several options to appear, including Syfy in the

subcategory and by selecting it, the user would be taken to a page with everything Syfy and it
would be organized into sections and themes with all other content not pertaining to the genre
out of sight while on the page to help keep focus on finding something of interest and narrowing
in on something to watch without the cluttered feeling from too many choices.
How do I turn my idea into a plan? I would start out by drafting my design creating a
wireframe of sorts with the categories and subcategories, mind mapping, and design thinking.
The challenge will be to protect the idea, grow it, and validate it (Schumann, n.d.). After I have
completed my visual thinking and have my specific ideas for implementation, I would team up
with design and software key players to make the updates and changes needed after consulting
and collaboratively working together to improve my idea. Thorough research would need to be
done on design patents to make sure the design is different. The initial design could be completed
within a month, we would need to file our patent which could take “one to two years to be
completed”, but we could launch our updates before this (Tang, 2019). We would want to do test
runs to make sure there are no glitches and send out updates and or news releases mentioning the
changes to come, in addition to any other legal matters we would want to be counseled on or
have taken care of. I would consider six-months to be a good time projection for the project to be
completely finished with all team members still having other assignments to work on. It is well
supported online with customer feedback, technology and entertainment blogs that the cluttered
interface is a major weakness for the company in comparison to Netflix’s organized, convenient
interface which is one of Amazon Prime Video’s top competitors. Netflix is a guide to seeing
how a cleaner interface design can impact user experiences; which is well supported online with
customer reviews and feedback. “The navigation screens are slick and intuitive, the playback
screens are simple but have all the options you need, and it’s a service you can click (or tap)

around without much thought.” (Nield, 2016). Our design would be completely different from
Netflix, but the knowledge of knowing the impact of what we are trying to achieve currently
being a major strength based on customer feedback and well received by the public is valuable
knowledge in understanding the benefits that can come from updating ours.
Benefitting the Company
How will my innovation benefit the company? A cluttered interface is not Amazon Prime
Video’s only issue mentioned from researching customer feedback; but I would say it is one of
the most trending topics for customer pain points and what most online feedback says holds
Amazon Prime Video back from its full potential. These recommendations build upon the
creative ideas already in place for the interface and help better organize and simplify the viewing
experience for customers. Our design is something that catches the viewer’s eyes immediately
and makes the difference between maintaining and losing subscribers as well as increasing
subscriber growth. Often, customers decide on keeping or signing up for a service based purely
on a two-minute glance over of the content, design and feel of a platform. Our company has the
content; we just need to work on the design to create a less overwhelming feel with our Prime
Video service and implementing greater personalization. By understanding our customer
concerns and addressing/implementing a solution using these innovative ideas; we can greatly
benefit both our customers and our company. Positive media exposure is also more likely,
especially with technology and entertainment bloggers discussing our updates which creates
positive press and helps attract new customers to try our services, and helps current customers
maintain their subscriptions.
Cost & Savings

What is the proposed cost of my idea? “The ballpark overall cost for a design patent
is $2,000 to $3,000.” (Tang, 2019). Salaries, design patents, and any other legal fees are the main
costs to consider for the proposed idea. We have team members specifically working on
maintaining and updating the interface so we wouldn’t need to hire any extra personnel. We have
the supplies, with not being a start-up company so the project would not be a large investment.
We would need a UI and UX planner, 2 to 3 designers, a testing group, 2-3 web engineers, API
engineer, application support after launch, a few team members in PR and marketing to promote
our update and share a news release, as well as any public appearances, content marketing and
social media to reach a large audience with our news of our updates interface.
How much money will it save the company if the idea is implemented? According to
Reuters, our company invests heavily in video programming, Amazon “reported that nearly $5
billion was invested for original and licensed films and TV shows” making it one of the
company’s most significant expenses. (Donnelly, 2018). Bezos also said the streaming audience
is more engaged than those not watching film and TV on the platform, “renewing their
subscriptions and converting from free trials at higher rates than members who don’t use Prime
for watching videos” (Donnelly, 2018). This illustrates how important the Prime Video customer
experience is to the entire company and the money Amazon is willing to invest in Prime Video to
help make their entire company more successful. Potential financial benefits for Amazon Prime
Video; impact the entire Amazon.com company. An estimated 100 million Amazon Prime
subscribers and 26 million Prime Video subscribers in the U.S. is reported by Reuters (Donnelly,
2018). If 15% of those 26 million Prime Video subscribers are unhappy that accounts for around
three million, nine hundred ($3,900,000) and on average a person in the U.S. pays $120 a year
( the estimated annual subscription cost) this would mean that by implementing the idea, four

hundred sixty eight million dollars ($468,000,000) can potentially be saved for the company
annually and invested into our Amazon Originals.
Strategy for Management
What is my strategy for introducing my solution to management? Before presenting this
recommendation to management, I would first spend two weeks discussing the action plan with
team members in the departments that would be critical for the implementation of this
innovation. Team members in design and software related fields that work on the interface or
have a good understanding of how everything works would be consulted and asked to join my
team to collaborate on this recommendation. I would also have a few team members who work
directly with customer feedback, marketing, PR, legal research/consulting, and project
management to develop a thoroughly detailed plan of action and cover all legal bases including
patent and licensing details. I would want to talk to someone experienced with managing the
interface to know more accurate time frames to create specific deadlines and gain insight into the
whole process. With the research and consulting from the different departments, I would spend
the third week developing a more detailed presentation with the help of my chosen team
members on certain specifics; which I would then present to my direct manager on the four week
mark discussing the need, the idea, and the benefits. I would ask my direct manager if they
would support our team in this implementation, letting them know how valuable they would be
to our strategy and the direction we want to go with the project. If they agree, the next step
would be for us to have a team meeting to discuss roles and expectations for week five. Week six
would be for my direct manager and I to present this to the top-tier management by week six or
seven depending on their availability. Using this plan of action shows how thoroughly planned

out the recommendation is and making the likelihood of success greater by covering all bases
and eliminating the tedious parts of implementation for upper management.
When is the optimal time to take risk? After the team is assembled, an action plan is in
play, support is given from direct management, research is thorough, legal consulting is
complete, and mentors are chosen; the time will be right to take the risk of presenting my
recommendation with the help of my team to the heads of the departments.
By presenting this idea, I am taking a risk, being proactive, goal oriented, and a creative
problem solver all of which are highly valued characteristics within the company.
What do I gain or lose from making the recommendation? By making the
recommendation, I have much more to gain than lose. I show my peers and management that I
care about the company wanting to improve customer experience. By making this
recommendation, I show my work ethic aligns with Amazon, as a team that practices being
leaders, innovators, and a customer-centric company. Taking initiative is something Amazon
Prime Video promotes; therefore, I feel I will be recognized for trying, and will show others what
I am capable of gaining some respect from co-workers.
The worst-case scenario I would envision is having a completely unsupportive and
belittling experience which is unlikely in the work environment I am in. In general, worst case
scenario from taking the risk is it being turned down. This would bring me back to the drawing
board to create another idea, believing each idea and experience can build off one another to help
create an even better innovation with knowledge gained. There is no harm in trying and failing,
but merely not trying at all. Our “day one” mantra start-up work culture, helps with empowering
employees to always look for new ideas and building upon past ones. Therefore, not much, if
anything is lost in taking the risk.

If my idea is not accepted, it will be time to give up on the idea and revisit the drawing
board using the idea and making adjustments. It is important to know how to go after an idea by
making the necessary adjustments, but it is also important to know when to completely give up
on an idea for at least the time being if no support or approval is given for the project. I do
believe every great innovation has obstacles, and that should not deter one from pursuing an idea
they really believe in. Sometimes an idea needs to be revisited at a later time when fully rejected
and should be given up on for the time being. Being a determined person, I would more than
likely find a way to change the idea to make it work rather than completely give up on it.
Strategy If Approved
Once approved to move forward in our implementation, but before final approval, we
would set KPIs for the project and track our progress on a weekly basis. Laying out the
foundation for the changes. Once we have final approval, we would update the interface, and add
the software that creates personalized content lists for users based on interested themes,
characters, time periods, genres, and more. After the first quarter, it would be time to review our
financial performance and compare our numbers with last years to see the financial benefits from
subscriber growth. We would continue tracking our performance with top management on a
quarterly basis throughout the year. Each quarter we would add the data to our excel sheets and
present our performance sheets to be evaluated. We would also monitor customer feedback and
make any changes to our ideas as needed.
Mentorship
While tracking progress, to have the best chance of success with implementing my ideas,
I would work with my creative team with diverse backgrounds within the company to bring
unique perspectives to the project. I would reach out to my direct manager and a manager I

admire within the company not a part of the project or outside of the company like a past
instructor, parent, friend or sibling as my second mentor. My direct manager mentor would help
me with guidance, connections, opening doors, providing protection, and credibility, supporting
me and helping me get the project off the ground while giving me honest feedback and helping
me stay grounded. Sometimes it helps to have someone really experienced with what you are
doing and other times you just want someone who is not involved in your work project that can
give an objective opinion; which is where the second mentor comes into play. I would keep my
manager mentor updated through shared files within the company, and lunch meetings once or
twice a week to ask questions, get advice, and have them introduce me to important key players
or support me during rough days. I would also have my direct manager mentor check in our team
once a week to make sure we are on track as a team. My mentor outside of the direct project
would help with giving me an objective opinion and with providing new insights from their
perspective outside of the project team. I would listen to both mentors and consider their advice
and opinions and try to implement their suggestions or build upon their ideas. I feel I would only
choose individuals to be my mentor whose opinion I valued. Valuing their opinion, I would
certainly try to implement suggestions I feel are a good fit for our teams’ vision.
I believe our team will bring unique perspective to the table and will have shared values,
and attitudes, never saying, “that’s not my job” but pitching in wherever is needed to make our
innovation a success. If a peer or management wanted to preserve the status quo, to negotiate
with them I would show them how I value the role they play in our project being authentic, and
show them how we are all a team, and that I am willing to do the same things that I expect of
others. Team building exercises would be helpful to leverage differences to form a winning team
creating compromises and gaining credibility and trust (Schumann, n.d.). By collaborating and

reaching compromises our team can endure in the hope of making a great contribution to the
company while building upon a company culture of innovation and leadership (Schumann, n.d.).
Conclusion
Amazon Prime Video is one of the top video streaming services in the world with its ever
growing content library, said to be “5 times the size of Netflix’s and 7.5 times the size of Hulu’s
library; leading the pack with the most titles” (Marie, 2019). Prime Video certainly delivers an
entertainment value destination unlike any other. By maintaining our large content library,
subscription pricing, personalized content recommendations, and smart devices that make
viewing experiences more convenient and innovative with voice command options; we are able
to compete amongst similar platforms and grow a loyal customer base. However, to keep
Amazon Prime Video positioned at the top, it is important for our company to maintain looking
for innovative ways to improve our service and the customer experience. In order to do this,
Amazon Prime Video must continue to listen to customer feedback, and stay on top of video
streaming trends, heavily investing in research and development, and create innovative user
experiences through smart devices, our interface and web applications. It is important for our
company to change weaknesses into strengths. By remaining open to change and new ideas we
can continue to be pioneers in our industry. It is important for our company to use negative
feedback as an opportunity to create and implement solutions to improve our service. The
recommendation given in this proposal is a way to improve customer experience by creating a
more organized interface and giving users more freedom and personalization; creating a more
convenient viewing experience, and making choosing what to watch simple! With the major
savings potential of an estimated $468 million that can be reinvested in our original content, and

our entire work culture promoting innovation and risk-taking, it is clear this recommendation is a
benefit to both our customers and our company.

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