Amazon to Update its Prime Services and Pricing Schemes

Amazon prime.jpg

NYT– SEATTLE — Amazon is introducing new options to subscribe to its Prime membership service on a monthly basis, a change that could make the company’s video service a tougher competitor to Netflix.

On Sunday evening, the company notified visitors to its website that it now offers two new Prime price plans, the first of which costs customers $8.99 a month to stream movies and television shows from a new video-only version of its Prime service. A second new plan, priced at $10.99 a month, will provide access to the full benefits of the Prime service, including video streaming, free two-day shipping on Amazon orders, music streaming and other services.

Big time statement from the global product-supply leader. It has been known for months now that Amazon has been stockpiling resources in order to attempt to compete with Netflix on the streaming front. Although Prime video has a huge user-base, this was in the past linked to its Prime 2-day shipping services that many Amazon users take advantage of. Now, Amazon is offering the video service by itself as a $8.99/month option and the service with the 2-day Amazon.com shipping rates for an additional two dollars a month.

I think overall this is a great move for Amazon because 1) They make more money per year with these options than they did with the yearly Amazon Prime subscription option and 2)They will gain users who want the streaming video services but do not need the Amazon.com 2-day shipping (savages IMO). Not many people know that Amazon has slowly built up a respectable video library over the last year, and even fewer people know about the watch offline option that they now offer. Say I want to watch Mr. Robot (great show btw) on a plane with no WiFi available. I would not be able to watch it on Netflix because Amazon just bought the rights to stream the show and because Netflix does not let you download shows and save them for later viewing. It only makes sense that this move will lead to more users and therefore more money for streaming rights as the battle for online viewership continues with $NFLX.

-KJ

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