Netflix, Inc. (NFLX) is facing competition from Amazon.com, Inc.'s (AMZN) Prime Video service in Europe. According to data released by research firm Parrot Analytics, Amazon has closed the popularity gap between its content and that of Netflix. The firm's data revealed that Netflix's content was 190 percent more popular than Amazon's offerings, down from a lead of 235 percent last year. The demand for Amazon's content went up by an average of 57 percent, while Netflix witnessed a decline of 32 percent in demand for its content.

Slovenia and Germany were among the top markets for Amazon. The latter country, in fact, is among Amazon's top three markets for its Prime service. In May this year, Amazon launched a live television service for an extra fee in Germany and the U.K. That service broadcasts popular television channels, including sports television network Eurosport. (See also: Amazon Monetizes Convenience.)

However, Netflix retains its lead in Europe's big markets, such as France and the United Kingdom. According to Parrot Analytics, Netflix accounted for 28 of the 30 top shows in France between January and April this year. The Los Gatos, California-based company has approximately 5 million subscribers in the U.K. That figure is expected to increase to 9.5 million by 2020, according to some estimates. (See also: Why the CEO of Netflix Wants More Cancellations.)

The increase in subscribers will be fueled by audience preference for streaming services over traditional cable bundles. According to Parrot Analytics, streaming services have the upper hand because they provide better-quality programming. An article in Variety references a PriceWaterhouse Cooper report that predicts revenues of $1.79 billion for streaming services by 2021. That figure is expected to be greater than the amount earned through box-office sales during the same year. (See also: Netflix's Subscriber Base Will Increase 44% by 2022: Report.)

 

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