Streaming War Intensifies as Amazon Diversifies Subscription Services

Image from Amazon.com

Yesterday the Hollywood Reporter published a story about Amazon's decision to offer Amazon Prime and Prime Video services separately. This means that for the first time ever you can get Prime Video for just $8.99 a month. Amazon’s decision to expand their subscription models comes just as Netflix is set to raise their prices for all their members (Jarvey, 2016). Previously Amazon Prime memberships were yearly subscriptions, giving people reason to hesitate due to the substantial contract commitment. This new pricing strategy puts Amazon Prime Video right in line with Netflix in terms of price.

It remains unknown if consumers will find the monthly subscription model enough to experiment with Amazon Prime Video. For long term membership gains Amazon will have to develop more original content and expand their movie offerings.

There has been no better time for large companies with online influence to go after a share of the video streaming industry. Cable costs continue to rise creating cord cutters out of loyal customers who are no longer willing to put up with the extra fees and taxes. The ability to access the internet is also spreading to new heights with Wi-Fi hotspots in affordable family cars. With numerous companies starting to add subscription models that offer ad-free streaming content such as Netflix, Hulu, Amazon, and YouTube Red. As the market for online streaming becomes more saturated it will be interesting to see which content providers find the right mixture of original and curated content to draw in customers. With the significant savings over cable it is even plausible for customers to afford multiple streaming services to fulfill their movie and television entertainment needs.

References:

Jarvey, N. (2016, April 17). Amazon Aims at Netflix With Separate Prime, Video Subscriptions. Retrieved April 18, 2016, from http://www.hollywoodreporter.com/news/amazon-aims-at-netflix-separate-884612

Image:

Retrieved April 18, 2016, from http://www.amazon.com/VIZIO-CoStar-Stream-Player-ISV-B11/dp/B00FRD1H4S