People who subscribed to Amazon Prime might be doing so to watch shows like “Transparent” or “The Man in the High Tower”.
Advertisement
Amazon’s decision to break off its video streaming service could cause some defections at Netflix, wrote Wedbush analyst Michael Pachter in a note to clients.
At the same time, Amazon also launched a monthly payment plan option for Prime members, responding to requests from subscriptions for more flexible payment options.
Netflix offers unlimited streaming for as low as $7.99 a month and up to $11.99.
NEW YORK, N.Y. – Amazon is taking on Netflix and Hulu with its own stand-alone video streaming service, just weeks before Netflix raises prices for longtime subscribers.
Check out our thoughts on Amazon’s new The Tick program below!
The company’s decision to offer a video-only version of Prime reflects a growing confidence at the company in the quality of the service.
Today Amazon have introduced an alternative monthly plan for their Prime service and give a separate option for just Prime Video monthly.
In other words, Amazon Prime is a competitor with Netflix, and now you can pay for it like you would pay for Netflix. For years, Amazon charged a onetime annual fee of $99 – use to be $79 per year before the recent price increase – for the service, which includes the following: free Two-Day shipping; Prime Video; Prime Music; Prime Photos (cloud photo storage); and over 800,000 free e-books. January estimates by Consumer Intelligence Research Partners put Amazon with 54 million subscribers, commanding 9 more million subscribers than Netflix. Customers who subscribe month-to-month for the full Prime service will pay nearly $33 more a year than if they subscribe on an annual basis. The latest move indicates the Seattle tech and retail behemoth is reaching out to those who balk at what they still consider a big annual fee. The new offering removes the requirement of an annual commitment to Prime, but it won’t be cheaper in the long run. Amazon, as indicated in the chart above, includes 4k streaming in either of their three options.
One year later, it unveiled Prime Instant Video, another bonus that came with Prime membership.
Advertisement
But Amazon is steadily chipping away at this skepticism and doubt about Prime Video by acquiring content Netflix does not have the rights to.
