Amazon Video Service Targets Netflix Users

(RTTNews) - Amazon is to offer American users a $8.99 monthly package for its video streaming of blockbuster films and popular TV shows.

The online retailer is also offering US subscribers the full Prime service as a monthly option for $10.99.

Amazon, which so far only offered annual subscription of $100 to get a year of Amazon Prime, is reportedly in an attempt to compete with Netflix, which has led the way in video streaming by offering a cut-price monthly service.

Amazon apparently targets users of Netflix, which recently increased its price for new users from $8.99 to $9.99. Netflix has long been available on a monthly basis, their plans ranging from $7.99 to $11.99.

Netflix is the dominant subscription streaming provider, with more than 75 million subscribers globally.

Under the $8.99 plan, Amazon will stream movies and television shows from a new video-only version of its Prime service.

By paying $10.99 a month, users can enjoy the full benefits of the Prime service, including video streaming, free two-day shipping on Amazon orders, music streaming and other services.

While the new monthly options are appealing to people who are more comfortable joining it on a short-term basis, the $99 annual option saves those who can afford to pay in one chunk $32.88.

Likewise, the $8.99 per month Prime Video subscription would cost a total of $107.88 a year, which is still more than a yearly subscription.