Amazon is taking on OTT platforms by launching their standalone video subscription service for $8.99 a month on Monday, a dollar less than rival Netflix. Amazon Prime members can continue accessing the content with their package.
“[Amazon Chief Executive] Jeff Bezos is absolutely escalating the arms race with Netflix,” said Wedbush Securities analyst Michael Pachter to The Wall Street Journal. “The two services will compete more closely for customers, and Amazon has the marketing advantage by offering the full Prime service for just a little bit more each month.”
Whether this change will impact Netflix is still up in the air, as Netflix is the home to many cult-favorite series, like House of Cards, Orange is the New Black, Narcos, and Marvel’s Daredevil. Amazon, to its credit, has produced award-winning original content like Transparent, The Man in the High Castle and Mozart in the Jungle.
Mark Mahaney, an analyst with RBC Capital Markets, told USA Today that Amazon’s new venture is a “significant negative development” for Netflix, considering that Amazon Video is lower in price and offers 4K content. "Amazon certainly has the brand name, the customer relationships, and the focus on high-quality consumer experiences to impact the growth in Netflix’s U.S. subscriber base, and perhaps eventually its global subscriber base," said Mahaney.
Amazon users have several perks, including free use on JetBlue flights and a download option for offline viewing. Meanwhile, Netflix users have global access to certain content and have the option to view content on multiple screens simultaneously.
While experts have been pitting Netflix and Amazon against each other, there’s another viable possibility: that both can co-exist in the binge-watching universe.
