For those unwilling to pony-up $99 for a yearly Prime subscription, Amazon today announced monthly plans for both Prime and, for the first time, Amazon’s Prime Video streaming service.
The availability of a stand-alone Amazon Prime Video subscription is unique for the eCom giant, who previously bundled all of its premium services under one Prime package.
For $8.99 per month—$1 less than the recently-increased cost of competitor Netflix—subscribers will have access to Prime Video originals like Transparent and 2015 hit The Man in the High Castle, in addition to HBO’s back-catalog and thousands of other TV shows and movies.
Analysts are viewing the monthly Prime Video subscription offer as a “significant negative development” for Netflix, given not only the company’s brand name and customer loyalty, but pending access to 4K content, to which Netflix offers Ultra HD for a premium price of $11.99. Netflix, who not-so-coincidentally announced Q1 earnings on Monday, saw stock prices drop as much as 10% following slowing growth and Amazon’s announcement.
That’s not to suggest, of course, that Amazon Prime Video is set to kill Netflix with its new monthly subscription offering. Investor shakiness notwithstanding, Q1 revenue was up 24% YoY at $1.96 billion; the company added another 2.23 million subscribers here in the States and 4.5 million internationally, both beating Wall Street expectations.
Amazon also introduced a monthly plan for their popular Prime package today, which includes Prime Video, Prime Music, unlimited photo storage, and, of course, free two-day shipping on most products. The $10.99/month cost is more expensive per year than the yearly subscription for Prime, but is designed for those not wanting to commit to a full 12-months at once.