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?

Amazon: Risky Business?

The Amazon’s Kindle Fire HD has joined the fierce competition of tablets; fighting alongside Apple, Asus, Samsung, and etc. But what makes the Kindle Fire HD so special is that not only a tablet but it is an affordable tablet. Amazon has implemented a strategy that no other companies would dream of doing. Amazon’s CEO Jeff Bezos acknowledged that they are selling their Kindles at cost; which means that they are not making profit off each Kindle they sell. However, what Amazon is doing is they want to as many consumers to buy their Kindles by keeping the prices low. In turn, their profit will come from selling their Kindle books, videos, and games. With this approach, Amazon is measuring the Kindle’s success by the amount of content Kindle owners buy on them.

Is Amazon playing a risky move by executing this strategy?

As a consumer, do you favor this strategy?

Do you think Amazon can stay in the tablet competition?

Would you purchase the Kindle Fire HD?


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