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Amazon could launch its own video streaming service

Netflix makes the prediction in a letter to shareholders
Thu Jan 26 2012, 16:17

ONLINE RETAILER Amazon is likely to launch its own video streaming service, according to Netflix.

According to Reuters, Netflix made the prediction in a letter to shareholders, adding that it expects Amazon's standalone service to be priced below its own online video streaming service.

"One class of competitors is the other over-the-top pure plays such as Hulu Plus and Amazon Prime," Netflix said in the letter. "We expect Amazon to continue to offer their video service as a free extra with Prime domestically but also to brand their video subscription offering as a standalone service at a price less than ours."

Amazon Prime provides two-day free shipping in the US and free access to thousands of streaming titles over the web for $79 a month.

Earlier this month, Netflix launched its service in the UK and Ireland, offering early adopters a one month free trial. Netflix has been offering video streaming in the US for some time, but was slow in coming to Blighty, where it now competes with Lovefilm.

The INQUIRER has done a head to head review between Lovefilm and Netflix, and we found that Lovefilm was slightly better, though Netflix was the winner when it came to TV shows. µ

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Comments
$6.50/month is already cheaper

They launched this a year ago. Not sure how this is news.

posted by : Colin, 28 January 2012 Complain about this comment
competition is best...

I've used the streaming side of Netflix for some time, and I really hate how slow they are to add new titles. It seems as though they wont add recently released movies to the streaming service just to get you to add their DVD by mail service. Maybe this will prompt one company or the other to do better...

posted by : compdoc, 27 January 2012 Complain about this comment
are you daft?

This is already available in the United States as part of the Amazon Prime service. According to Wikipedia, Amazon launched streaming video in 2006. Judging by other news outlets' coverage, the story here is that Netflix expects Amazon to spin it into a separate subscription service, which will presumably attract customers who have no interest in Amazon Prime itself. In any case, you guys failed hard on this one. Better luck next time.

posted by : irritant, 26 January 2012 Complain about this comment
Incorrect Price

Amazon Prime is $79/year, not per month.

posted by : Jim, 26 January 2012 Complain about this comment
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