Amazon launches Prime Movie Streaming service
The US Prime Delivery service subscribers of Amazon will get the chance to stream television shows and movies from Amazon’s Instant Video library the site for free.
Amazon Prime subscribers pay $79 annually to get the unlimited two-day delivery on purchased items from Amazon.com.
The library eligible for Prime subscribers include up to 5,000 televisions shows and movies that can be streamed to a variety of devices.
While this is good news for US Amazon subscribers, UK Prime subscribers will not however be able to get the same benefit.
There is a possibility that Amazon will look into offering VoD on Amazon.co.uk considering that it has at its disposal the entire LOVEFiLM library.
The offer which is available only to the United States, is seen as Amazon’s strategy to rival the Netflix streaming service which has applications on iPad, iPhone, Apple TV, PS3 and Xbox 360 among others.
A monthly payment of $8 or $96 a year allows Netflix subscribers access to a massive library of titles as well as unlimited streaming.
While the eligible library of Amazon is smaller, customers will always be lured by the offer of fast-free delivery on the items under Amazon’s inventory.
Consumers are already starting to compare the cheaper $79 per year subscription of Amazon to the $86 yearly subscription of Netflix. While Amazon’s subscription includes a free, two-day shipping, it only offers 5,000 titles compared to the 20,000 movie and television shows offered by Netflix.
The DVD-by-mail space was originally marketed by Netflix so it has a wide lead compared to the other stores offering the same rental services. Blockbuster, which used to be a leader in the video rental business, learned the lesson the hard way. Many are thus confident that Amazon’s new product will not be a Netflix killer.