Amazon Prime goes monthly to do battle with Netflix

Amazon Amazon-Prime-One-Year-Membership/dp/B00DBYBNEE" target="_blank">on Sunday night unveiled a new monthly subscription package for its Prime Video streaming service that sets it up as a direct competitor to Netflix and Hulu. Now, it is an outright one. Instead, it's for the Netflix and video subscription crowd, and by comparison, Amazon's option is cheaper and has Ultra HD content. You could subscribe for a couple of months to catch up on Transparent, Mozart in the Jungle, and The Man in the High Castle without committing to a full year.

But the new $10.99 a month plan, which would cost $131.88 for the whole year, gives the freedom to commit to the service on a month-to-month basis, potentially making it a more attractive option to people who found the $99 upfront annual fee too costly.

If you ever wished you could pay for Amazon's Prime streaming service monthly just like Netflix, now you can.

That means shoppers who find they only benefit from Amazon Prime free shipping during the holidays or during certain other times of the year can now choose to pay $10.99/month rather than paying $99/year, which is the equivalent of $8.25/month.

The argument stemmed from the fact that Amazon's chief rival for the company's video streaming service in Netflix Inc.

And those who wish only to view Prime Video can sign up for $8.99/month - an option for those who want to watch (or binge-watch) certain programs available exclusively through Amazon. "The incentive, however, is that the new monthly memberships can be canceled at any time", the Times notes. Other popular streaming services such as Netflix, Hulu and HBO NOW all offer their own Apple TV apps. Despite the appearance of a relatively large lump sum, that $99 per year comes to $8.25 per month.

Until now,'s (NASDAQ:AMZN) Prime Video service was bundled with a full Prime membership, which included free shipping on Prime Amazon items.

It's a big move, particularly for the video service, which users could previously only access through their Prime subscription. But the company's guidance for member growth in Q2 - particularly for its global markets - seems to have anxious some investors. Amazon entered the video streaming industry much later than Netflix, and its catalog of movies and television shows, despite increasing, still does not compare to Netflix's catalogue.

Amazon said this week it's rolling out a new subscription option for video only, which will cost $8.99 per month. Original series include "The Mindy Project", "Difficult People" and "Casual". This is a variation of paying the typical $99 upfront for an annual Prime membership, which is still available.



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