Wednesday, February 23, 2011

Amazon Prime Head to Head With Netflix

Amazon has announced the launch of new video streaming service that gives Amazon Prime members unlimited, commercial-free instant streaming of more than 5,000 movies and TV shows. Previously the Amazon Prime service was about offering free shipping irrespective of the purchase price for just US$79 per year. Now for no extra charge Prime members get the new service effectively for free and Amazon is even offering a one-month free trial of Prime to non members. This is creative cross selling and creation of a premium media and shipping service.

The movie and TV show content can be instantly accessed on Pcs and some 200 Internet connected TVs, Blu-ray players and set-top boxes.

Netflix now is clearly in Amazon’s sights and although its streaming catalogue is considerably larger Amazon's overall catalogue for rentals and purchase exceeds 90,000.

The combination offer of Prime and streaming services could not only kick start the new service but will ultimately boost sales of physical and digital products. It is a clever strategy which may be restricted today to the US but points to what they can do with their recent UK acquisition.

Amazon is now laying a cross media and cross border architecture which could be very attractive and even negate them the worry of the toll booths that Apple has misguidedly erected. It is feasible that Amazon can now extend streaming to music, ebooks whatever and I doing so create a premium service for all.

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