Amazon Prime Going Monthly (AMZN, NFLX)
November 6, 2012 by Paul Ausick
For those of you who are more old-fashioned, you can pay $79 a year for Amazon Prime, including both the shipping and the video streaming. Unfortunately, that’ll cost you about $6.59 a month. Oh, wait …
Amazon is probably not trying to trip you up. Instead, the company is likely hoping to increase its competitiveness against Netflix Inc. (NASDAQ: NFLX), which offers its monthly video streaming service for $7.99. Amazon does not want to lose any customers just because they might not be able to or not want to cough up $79 all at once. And there’s really no reason to challenge Netflix’s price either.
Amazon’s new deal is about casting a wider net, not making its current Prime customers — or anyone else for that matter — an offer they can’t refuse. The monthly package is not being offered to all Amazon’s customers according to a story at MarketWatch.
Netflix shares are down 1.7% at $76.91 in 52-week range of $52.81 to $133.43.
Amazon’s shares are up about 1% at $236.86 in a 52-week range of $166.97 to $264.11.
Paul Ausick
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.