While an annual subscription to Amazon Prime costs $99.99, Amazon is now offering monthly subscriptions to its users for $10.99 per month, but if a user doesn't need added services like music streaming or free shipping, he or she will only have to pay just 8.99 a month.
Netflix will let you save up on mobile data while you stream
With the launch of the new service, a monthly subscription to Amazon Prime is now cheaper than one with Netflix, which currently stands at $9.99 a month.
In the UK, a yearly Amazon Prime subscription costs £79 per year but if you subscribe only to Prime Videos, you will be able to buy a monthly subscription for just £5.99 a month. In contrast, Netflix has standardized the minimum monthly subscription, including those of legacy users, to 7.49 a month. The standard package includes HD viewing and dual-screen usage.
Netflix also released its Q1 earnings report last night, revealing a jump in subscriptions outside the United States but the rate of growth has dipped. Netflix is now available in 130 countries and is targeting millions of potential users in emerging markets who can bring in $70 billion worth of additional revenues.
Netflix' price hike hits legacy users, ends discounts
Even though Amazon Prime Video isn't as widely available as Netflix, Amazon is attempting to improve the quality of content being offered to consumers. In the UK, users can now watch a number of brand new content like Disco: Spinning the Story which is based on life and times of singer Gloria Gaynor, Ellis Island: A History of the American Dream, The Man In The High Castle, Inside John Lennon and The Otter's Trail.
If Amazon succeeds in matching Netflix in terms of content, pricing and reach in the coming months, it can sure give the former a run for its money. However, the overall cost of monthly subscriptions exceeds that of a yearly one, so it is ultimately up to subscribers to decide which suits them best.