Amazon Prime Video Now Available by the Month

The new service from the Seattle-based online retailing giant costs $8.99 a month, a dollar more than a basic Netflix subscription and one dollar less than Netflix's most popular standard subscription.

Amazon began experimenting with a monthly payment option for Amazon Prime members through a partnership with Sprint Corp. last month. Amazon will also offer a monthly option for its Prime shipping service for $10.99.

New customers can now pay $8.99 a month to watch Amazon's Prime video streaming service.

Previously only available as a $99 annual subscription, Amazon Prime will now be offered for a monthly subscription of $10.99 per month.

"This could present a great opportunity for Amazon to sign up new subscribers and eventually cross-sell other services to them, including a Prime subscription", wrote Paolo Pescatore, director of multiplay and media at CCS Insight, in a research note. The video-only option won't come with any free shipping perks.

If you pay for an annual membership with Amazon Prime, you're paying $99 a year - or $8.25 a month.

The Amazon service has thousands of series to choose from, and while its original series aren't quite as buzzy as Netflix', they've gained followings in their own right and have won a slew of Emmy and Golden Globe awards. If customers opt in for the $8.99 monthly subscription, they'll actually be paying $8.88 more compared to the annual $99 plan.

Amazon's Prime subscription used to be a yearly affair: pay $99 and get all the services for 12 months straight. The monthly subscriptions add up to $107.88 a year for Prime Video and $131.88 for Prime if subscribed for a year.

Similar to Netflix, Amazon has invested money into producing original content, including award-winning shows like Transparent and Mozart in the Jungle. "And in appealing directly to cord-cutters and Internet streamers with a standalone offering, Amazon seems poised for a head-to-head fight with Netflix". "It could prove more attractive for those who cannot afford (or want) a $99 up-front membership or don't want to commit for a full year". That's the kind of flexibility that Amazon is banking on with this new plan.

As for Amazon, the company says it has decided that Prime does not have to be one-size-fits-all.



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