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Amazon Prime is a service for Amazon users offered for $79 a year that offers free shipping on Amazon purchases, no matter the order size, with a small upcharge to one-day shipping. If you are a habitual Amazon user, it is a great deal.
Engadget offered screenshots yesterday of Prime members who were noticing “Prime Instant Videos”, unlimited streaming on select movies for those who join Prime. It includes the note: “Your Amazon Prime membership now includes unlimited, commercial free instant streaming of 5,000 movies and TV shows at no additional cost. If this is confirmed and the selection is good, we could very well give their our money without hesitation, as Prime by itself as a shipping option is already tempting. Too often have we waited to buy Amazon products till we could fill a $25 super saver requirement.
On a practical level, free shipping aside, $79 a year turns out as $6.58 a month, a full $1.41 less than Netflix. Of course, Netflix is estimated to have four times the amount of movies at 20,000. But with a good quality selection, and Amazon negotiating and increasing the selection over time, launching with this number is promising for the future.
As Business Insider points out, Amazon already sells and rents digital content. It is already on a variety of boxes, and sells many of them on their site, and could engage in a variety of great bundling deals. Just like Amazon getting into the Android app store space, Amazon in the video subscription space could mean a lot of changes to come.
We look forward to an official announcement.
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