Amazon’s popular Prime subscription service has reached much success, but the firm currently takes it to a whole new level. They have now introduced two new monthly subscription plans for the Prime membership which mainly focuses on video streaming.     

The e-commerce giant has introduced its first stand-alone Prime service intended for video streaming alone, and it costs $8.99 per month. In 2011, it has launched a service for movie streaming as a customer retention tool, but now considering it as a standalone service is implying that the tool has actually grown to be an independent rewarding service.

Subsequently, subscription for a new Prime monthly plan which costs $10.99 per month involves a full Prime service with a two-day shipping, video, and music streaming all for free.

The Amazon Prime is a much success for the company, however, there’s a single downside of this as the customers had to purchase a full-year membership for $99, which many customers were unwilling to do.  


To resolve the problem, Amazon has offered a monthly subscription that comes into an affordable payment. However, with a monthly subscription, it is comparably costly than the one-year payment that gives 25% discount.

An experiment was done by the company, along with ties on Sprint Corp to test the monthly payment option last month, but it is now available for all. The monthly offer appears more alluring for customers despite its increased overall payment as the subscription can be turned on or off, depending on customers’ demand. Thus, this would be more appealing for customers in availing offers especially during holiday season.

Furthermore, with Amazon’s monthly payment offer, including its separate video service, Amazon is now playing head to head with both rivals Netflix and Hulu. Netflix is regarded as the biggest customer for Amazon’s cloud computing service and both have been working together for the long term.

With the company’s new offering, it appears that these two are anticipated to be the biggest rivals. Its stand-alone video service put forward that the e-commerce giant is prepared enough with its fast programming to compete with Netflix.       


Amazons has snapped deals for HBO’s content and premium TV network Epix. Director Woody Allen was also signed for an exclusive TV series and is independent movies were aggressively purchased.

With the offered deals of Amazon, Netflix, and Hulu, it suggests that customers will be able to have a good variety of options with their very competitive deals. The most popular offered plan of Netflix costs $9.99, while Amazon’s plan costs less than a dollar, giving it a slight advantage. Hulu, on the other hand, offers basic service which costs $7.99, with commercial free option for $11.99.

“CEO Jeff Bezos is absolutely escalating the arms race with Netflix. The two services will compete more closely for customers, and Amazon has the marketing advantage by offering the full Prime service for just a little bit more each month,” according to Michael Pachter from Wedbush Securities.  

In the video streaming market, Netflix is currently the leading company, comprising of more than 75 million subscribers worldwide. Its service for monthly basis has long been available and variable plans were also offered depending on the quality of the video as well as numbers of screens to stream video at the same time.

However, Amazone declined to comment its total count on Prime members, but have mentioned it has over tens of millions of customers. Meanwhile, Piper Jaffray recent forecasts of Prime members settled for 57 million to 61 million. Netflix’s video streaming came in first before Amazon, but is currently slimming the gap.