Amazon wants to be your destination for streaming video instead of Netflix

Sure, Netflix is currently the place to go to binge watch your favorite old television shows, original comedies, dramas, and motion pictures. Using your smartphone or tablet means that you are never without something great to watch, no matter where you are. And while Netflix has always had competition from Hulu and others, Amazon is planning a stand-alone streaming service that will use the online retailer's experience with Prime to stream video to subscribers. Amazon is also planning on competing with Netflix on price. At $8.99 a month, Amazon will be a dollar cheaper than what Netflix charges for its most popular plan.

Amazon also announced on Sunday that its $99 a year Prime service, which offers free two-day delivery on Amazon purchases along with unlimited streaming of movies and television shows, will also be offered on a monthly basis to all U.S. consumers. The price will be $10.99 a month, and consumers will be allowed to turn on or off the service for specific months. This means that shoppers could elect to enable the service during the holiday shopping season, and disable it afterwards.

Netflix has done very well with its original programs, well enough so that shows like Orange Is the New Black,Unbreakable Kimmy Schmidt and House of Cards are strong enough to drive  subscriber growth. Amazon has exclusive rights to some older shows from HBO and has signed director Woody Allen for an exclusive television series. Netflix still has the advantage here, even with that $1 higher price each month. That is, until Amazon comes through with its first breakout show.

There is no word yet on when Amazon will officially launch its streaming video service.

source: WSJ

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