Amazon today began offering monthly subscription models for Amazon Video and Amazon Prime for $8.99 and $10.99 respectively. This is a new direction for Amazon, which up until now only offered the two services bundled together at a flat rate of $99 per year, which you had to pay upfront.
By making Amazon Prime available as a monthly subscription without the one-year commitment, they are now in a prime position (pun intended) to convert people who historically only used their services during certain times of the year. The $10.99 monthly membership is more expensive than paying for the full year up front, but only if you end up using it that long. If you opt for the monthly membership, you would be saving money if you subscribed for eight months or less per year.
Amazon Video being available as a stand-alone subscription for $8.99 a month might be a tempting option for Netflix subscribers who are grandfathered into the $7.99 monthly digital subscription plan. Come May, that rate will go up to $9.99 a month. Amazon is investing heavily into its video library and add-on subscription offerings, but it would be a stretch to say it's better than Netflix at this point. Switching from Netflix to Amazon Video just to save $1 a month is probably not the most dramatic savings tactic, but people who have gotten rid of their cable service might see it as a complimentary service.
For Amazon, this is another opportunity to get more people to sign up and potentially get hooked on free shipping and a couple of the extra Amazon Prime benefits so that they sign up for the full year eventually. Or even better, stay on as month-to-month for a year.
If you think this finally makes Amazon Prime good deal for you, you can sign up for a 30-day free trial.
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