Amazon.com Inc (NASDAQ:AMZN) has been making moves to developing a competitive video streaming service that can be used on the company’s Kindle Fire devices. The company is now making a couple of moves that will further entrench Amazon.com Inc (AMZN) as a viable competitor to Netflix Inc (NASDAQ:NFLX) and Hulu.
The first move that Amazon.com Inc (NASDAQ:AMZN) made was introducing its Amazon Prime service which allows customers free expedited shipping, deals on Kindle e-books and now video streaming. Amazon.com Inc (AMZN) is now rolling out a test monthly plan of $7.99 per month to be a direct competitor with Netflix Inc (NASDAQ:NFLX). This is a new option alongside the $79 per year current subscription. While Amazon does not have the library that Netflix has, an analyst said the “other stuff” an be a benefit that is worth the money. And the test being rolled out as holiday shopping season ramps up is mor than coincidental.
“Holiday shopping is extremely important for Amazon,” said Sean Kim of RBC Capital Markets. “Anything that can get more users to the website and use Prime is going to drive more sales.”
And perhaps as another move to try to encourage for Prime subscriptions, Amazon.com Inc (NASDAQ:AMZN) is looking to develop some original programming that cannot be found on Netflix or Hulu. The big focus by Amazon.com is expected to be on children’s programming, and there is a recent story that announced a new such project that is expected to be headed by a couple of actors from the popular TV show Big Bang Theory. The concept of original video streaming programming is bold, but whether this idea will play out successfully in conjunction with the new monthly subscription will be something to watch in the coming months, to see if Amazon.com (AMZN) can get more market share away from Netflix Inc (NFLX). Investors like billionaire Jim Chanos of Kynikos will certainly be watching the progress of these two items.