Amazon launches rival to Netflix

Amazon (NASDAQ:AMZN) announced the start of a new monthly Prime membership which includes a video streaming service similar to Netflix.

As of April 17, the e-commerce giant now offers a monthly Prime membership for its video streaming service at $8.99 per month, one dollar less than Netflix's standard service, along with a $10.99 per month option that includes free two-day shipping, music streaming, cloud storage, and same-day delivery in some cities.

Before this launch, Amazon's Prime membership was a flat one-year rate of $99, reported GeekWire. The monthly membership is available for both Prime video or the full membership option.

In 2012, Amazon tested a monthly version of Prime that gave benefits to members for $7.99 a month, while annual membership at the time was $79.

In addition, last month Amazon partnered with Sprint to give customers access to Prime for $10.99 per month. In the most recent quarterly earnings report, Amazon noted that Prime memberships increased 51 percent in 2015. Many of those members are teens – according to a recent Piper Jaffray Companies survey, 41 percent of teens say Amazon is their top shopping website.

Amazon has continued to add Prime benefit offers in 2016, including a new discount on video game purchases.

For more:
- see this GeekWire article