Amazon: Prime Joining the Battle of Video Streaming

A long while back Amazon introduced Amazon Prime, a program that provided their customers with all kinds of perks: free two-day shipping, instant streaming of movies and TV shows, and instant access to thousands of Kindle Books; all with the price of $79 dollars a year, and $39 dollars a year for students. This service is another asset to the e-commerce giant. Recently, in response to the holiday season upon us, Amazon decided to offer another pricing option program: $7.99 per month. By offering the $7.99 per month option, Amazon has placed themselves in the middle of the video streaming battleground along with Netflix and Hulu Plus. However, as of right now, Amazon knows that their video streaming options are not as grandeur as Netflix and Hulu Plus, but they do have free two-day shipping and Kindle Books up their sleeves.

Amazon’s strategy had always been focused on the consumer. They keep customer service and pricing a priority giving them a competitive advantage. When Amazon decided to offer the $7.99 per month option, they knew full well that they are ready to duke it out with Netflix and Hulu Plus. Since all three company’s prices are identical, they are now competing on differentiation.

  • Amazon has their free two-day shipping, Kindle Lending Library, and Amazon Instant Video.
I absolutely adored the free two-day shipping; I  have a Kindle Fire; Amazon have movies that I can stream that Netflix does not have [ex. The Breakfast Club].
  • Netflix has the largest assortment of movies and TV shows
They have A LOT of movies and full seasons of TV shows!
  • Hulu Plus provides a collection of movies and TV shows along with new episodes of shows the very next day in case you missed it.
I always miss my TV shows when they air, so Hulu Plus is my lifesaver.

Honestly, for me, it would be very hard to choose. I currently have all three services and I cannot seem to let go of any of them because each of them provide something the others do not have.

As for Amazon offering a new pricing option for their Amazon Prime was a subtle but yet effective move. As a customer perspective, I know when I first saw the price of $79 a year upfront, I hesitated. As a student perspective, the $39 a year was a bargain. As for a person that does not like to commit to one company for a whole year, the $7.99 option is a must have. Amazon might not have as much video options as the other two, but Neflix and Hulu Plus should keep an eye on Amazon because that can change.


  • How do you feel about Amazon Prime’s new price option?
  • How will Amazon Prime fare against Netflix and Hulu Plus?
  • Which service is your favorite?

8 thoughts on “Amazon: Prime Joining the Battle of Video Streaming

  1. I think that Amazon’s new price option is great. It gives people an option that does not empty their wallet. I feel that video streaming is especially popular with the younger generation. At this point in time most of them do not have a lot of money saved up so by giving them the option of $7.99 a month is a great idea. However, as a student, I think that if I was going to do the $7.99 a month, I would only do it for one month, decide if I like it and then purchase the $39 yearly package. After just 5 months it will have already paid for itself.

    I think that Amazon will definitely provide some competition. It may take time at first because people do not see Amazon as a video streaming website really, but once the word gets out I think people will be willing to try it. Amazon is a reliable company and they stand behind their products so I think that they will make sure to stand behind their video streaming as well. Netflix lost a lot of consumers when they started changing their prices but I do not think Amazon will do this. They would be able to pull the money from other profitable areas before raising prices because they are a company that really values the consumer and wants to make them happy first and foremost.

    Currently, between the three I think that Netflix is my favorite. However, there are applications for the iPad and other tablets that stream episodes for free so I typically just use those.

  2. I have Netflix and feel all their movies are out of date. They do not offer anything good and the only TV shows they have on there is the old seasons. Amazon will defiantly be able to compete in this industry because I feel the others do not have much to offer. I really like Amazon, reading this article has persuaded me to switch and deactivate my Netflix account.

  3. I agree with my peers that Amazon’s new price is a great move. It will place them right up there with Netflix and Hulu Plus. Amazon Prime time is a great bundle to have. I think that the company who will come on top will be the one who provides that best movies and shows. It will be interesting to see how this plays out. With more competition to worry about it will only be a matter of time before one company makes a move to try and come in front of the competition.

  4. I feel that the Amazon Prime’s new price option is very tactful. This makes the in competition between Hulu Plus, and Netflix because of the monthly payment, instead of having customers pay a one time rate for an entire year. Most consumers like to have the option of being able to let go of something whenever they want, so having a contract is not in their favor. Their major advantage is having a wide array of books for their customers to choose from. With movies that are inspired by books, some people like to read the novel before watching the movie. I feel if they have if not all, then most movies based on novels and the book itself, they will probably climb to the top really fast. I have only used Netflix, and they did not have up-to-date movies. I guess I should look into Amazon and Hulu Plus.

  5. I think that Amazon Prime has a few problems that are keeping from being top dog. One that you have to pay up front for a full year and if you don’t like to commit to stuff, Netflix is more for you because you can cancel at any time. The next thing is, although Netflix doesn’t have all new releases and has less television series than Amazon Prime, to get these titles on Prime, you have to dish out another $1.99 or more. It doesn’t seem to me that any of these streaming sites are good, so I go an alternate route and get Comcast. This way I get cable at home and still have the option to stream TV shows, movies and more. To me it’s the best deal when packaged with cable and internet. There is always new and upcoming sites moving into the streaming business, so it’s only a matter of time when something comes out that’s better than all of these sites.

  6. Great post! I agree with the points you made as well as several of the comments regarding the competition Amazon will inevitably provide to the instant streaming market. Amazon’s pricing options are excellent. As a student, 2 day shipping with Amazon Prime is a steal for $39/year. I’d have purchased it, but they actually allow you to have multiple members on the $79 plan though I do believe it’s restricted to family. Regardless, Amazon has incredible prices considering all that they offer as a “store.” I would rather pay the upfront price because I know it is a good deal even if $7.99/month is more flexible and sounds more “affordable.” I’m not sure if you can have multiple members for the $7.99 price, so it would seem that in the long run, the year plan would be better.

    I actually think Amazon will be a fierce competitor for Netflix and Hulu because of the sheer resources they have. I think Wal-Mart is second to Amazon in online sales, but at the rate Amazon is going, I could easily see them dominating the streaming market, since they’ve got a strong hold on the text market with Kindle and a commanding lead of the online retail market. And even though this venture is in its infancy, I am certain Amazon can pump the money into it to promoting it, since your post is the first I’m hearing of it. With $3.4 billion in gross profit, Amazon could buy out Hulu and still have money to compete with Netflix whose gross profit for 2011 was $242 million.

    I think Amazon has the best and most options for both products and pricing as well as potential, but I don’t use it to that extent. Netflix is definitely my favorite simply because I’ve had it the longest, and I use it the most. I hate that I pay for Hulu and still have to watch commercials. And I usually only use Amazon’s 2 day shipping for immediate text book delivery for classes and go to a physical store for the rest.

  7. Great post, you added a lot of detail and good information…
    I agree with what people are saying, each company offers something that the other doesnt. I can definitely see Amazon competing with these other companies. I was recently looking to watch a movie for one of my classes and I waited till the last minute. The professor said it was available on netflix but since netflix split their online streaming and mail in movies, the movie I was looking for was only available through the mail order option. This was not an option especially since I waited till the last minute and it would be an extra charge because I only have the online streaming service. I then ended up finding it on Amazon which allowed me to rent it for 7 days and watch it online for 3.99. I was surprised since I didnt know about their new service.
    I also agree that amazon has the money to put into this service if they choose to continue it in order to make it successful. We’ll just have to wait and see what happens.

  8. I like another poster have Netflix and have found that they are not only outdated but most of the best movies are available only on dvd. The pricing that Amazon is offering will not make them a competitor in the market but may eventually overtake their rivals based upon their resources.

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