Amazon already has a steady flow of streaming video customers, but it may be preparing to offer another service that may give Netflix a lot more competition. Currently, Amazon Prime subscribers can get access to Amazon’s library of streaming video content at no extra cost. In the future, Amazon may create a standalone streaming video service that anyone can subscribe to.
Content executives told the New York Post Amazon isn’t quite sure how much it will charge for its new video service. Netflix however has an idea on how Amazon’s new service is going to set customers back. In a letter to shareholders, Netflix noted Amazon may try to undercut them.
“We expect Amazon to continue to offer their video service as a free extra with Prime domestically but also to brand their video subscription offering as a standalone service at a price less than ours,” the letter reads.
Netflix defended itself against Amazon and Hulu Plus by praising its much larger, commercial-free library of content.