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Re-activateAmazon.com currently offers video streaming via its Amazon Video On Demand service: Now, the company may be working on a new streaming service that's bundled into its $79 per year Amazon Prime premium subscription service, ratcheting up its competition with Netflix in this space.
According to tech blog Engadget, which posted a screen shot of an ad that has since been pulled, Amazon will give Amazon Prime subscribers unlimited access to more than 5,000 commercial-free movies and TV shows at no additional cost.
Although Amazon's current pay-per-view streaming service already competes with Netflix's instant-streaming service, the $79-per-year price compares favorably to Netflix's least expensive yearly subscription, which costs almost $96 a year ($7.99 per month). Amazon Prime subscribers would essentially get free unlimited two-day shipping plus instant movies for less money than Netflix subscribers pay to get just its streaming service.
Interest in Amazon's potential streaming activities has been on the rise following the company's announcement that it was acquiring Lovefilm, a streaming service often described as the European Netflix. Amazon hasn't commented on the rumors.
—James K. Willcox
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