Amazon to Go Head-to-Head With Netflix, Slates Test of Monthly Fee Plan

Nov 7, 2012  •  Post A Comment

Amazon.com is positioning its video-streaming service to compete more directly with Netflix and Hulu by testing a $7.99 monthly subscription plan, reports Advertising Age.

The plan will be available for its Prime members. While Prime membership costs $79 per year, Amazon’s website has been updated to say the service charges $7.99 per month, which is more expensive on an annual basis, the story points out.

The monthly fee is the same as Netflix’s streaming service and Hulu Plus. While Amazon has been considered a likely candidate to buy Netflix, the new pricing plan may indicate that’s less likely, the story adds.

"They are trying to make it look more competitive with Netflix in order to win over new customers from Netflix," said Wedbush Securities analyst Michael Pachter.

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