Amazon Prime Going Monthly (AMZN, NFLX)
Wikimedia CommonsHas Amazon.com Inc. (NASDAQ: AMZN) got a deal for you! For just $7.99 a month, you get the company’s Prime free 2-day shipping service plus access to the company’s streaming video service. For those of you who are more…
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Has Amazon.com Inc. (NASDAQ: AMZN) got a deal for you! For just $7.99 a month, you get the company’s Prime free 2-day shipping service plus access to the company’s streaming video service.
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
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
