If Amazon CEO Jeff Bezos had launched a directly competitive streaming service when Hastings was actually expecting it a few years ago, we could have all been treated to a bruising battle for dominance in the subscription VOD space.
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Amazon announced Sunday that it is now offering two new monthly subscription plans for the Prime service. The $99 fee will still stand for those who are committed to keeping Amazon Primes free shipping and streaming services throughout the year.
Furthermore, Amazon will also be offering its Prime membership as a monthly subscription for U.S. customers at $10.99, instead of the annual $99 fee that you pay to get Prime shipping service, Kindle Lending Library, and Amazon Music, among other things.
The second new option is a monthly Prime membership at $10.99 a month without an annual commitment. Now it looks like Amazon is turning their target sights toward the video streaming service.
Even if the new offer from Amazon isn’t enough to put Netflix to bed, at least in the short term it does create a “negative headwind” for its established rival, Mahaney said.
The standalone Prime Video service will cost $8.99 a month.
“As I explained in the article, “$8.25 per month is a much easier expense to handle than shelling out $99 upfront.
Amazon’s announcement won’t have any impact on its competitor’s results, but it may have a substantial impact on how analysts view estimates of Netflix’s future earnings and revenues. And, the option of getting free two-day shipping for a couple dollars more will be enticing. It has been trying to establish a signature series a la Netflix’ “House of Cards” and Amazon’s “Transparent”.
Without making some dramatic move to differentiate its new service from Netflix, Amazon may only have an incremental gain in mind by making this play.
Amazon’s monthly price sits at $8.99, including high-def quality when it’s available. YouTube, Netflix, and other video streaming services are at an all-time high. Amazon repositioned its video streaming service as a monthly standalone to take on Netflix, who is now charging $9.99/per month.
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Offerings: Movies and already-aired TV shows, including “Friends” and “Breaking Bad”.
