Here is some good news for Amazon Prime users. The company has announced two new offers for subscribers. While some experts believe that these new offers are targeting customers who cannot afford the normal charges, other argue that the move is made to steal Netflix’s existing customers. Here’s why this point has been raised:
Let us first have a look at Amazon Prime’s new plans: The first plan is where the company is making Prime Video, a video streaming service available for $9 which is a dollar less than Netflix’s monthly subscription. In the second plan, Amazon Prime is allowing users to pay $11 for a full subscription on a monthly basis.
As we know, online video streaming market is rapidly growing. YouTube, Netflix, and other video streaming services are at an all-time high. To beat the competition, not just Amazon, but all the other services have been left with no other option but to revise their prices and offer customers only the best. When there was monopoly, these companies could easily charge whatever they felt is right. With new entrants in the industry that offers quality service at low prices and also everything trying to stay ahead in the competition, the subscription prices are dropping. It won’t be surprising if Amazon Prime or Netflix or YouTube continue to drop the prices to steal each other’s existing customer base.
Coming back to why do experts believe that with Amazon Prime, Amazon is competing with Netflix? Currently, only 3% of North America’s Internet traffic is on Prime. As per a report published by The Washington Post, here is how Amazon Prime is aiming to pull more crowd:
“With experiments in original video such as “The Man in the High Castle,” Amazon is building the kind of exclusive content war chest that any Internet and media giant now needs to set itself apart. And in appealing directly to cord-cutters and Internet streamers with a standalone offering, Amazon seems poised for a head-to-head fight with Netflix.”
Do you have something to add to the story? Let us know in the comments below.
For more technology news, you can subscribe to our newsletter. If you are a social media junkie and would like to receive updates on your timeline, then you can also like us on Facebook or follow us on Twitter.