Feb 252011

Recently Amazon released their free “internet streaming” of around 5,000 titles to Amazon Prime customers at no extra charge, this puts them directly in competition with Netflix’s Internet streaming service and at $79 per year is about $20 less per year than Netflix.

Currently however, Netflix offers about 5x as much streaming content as Amazon however with Amazon’s massive buying power there is a good chance they can negotiate contracts with movie studio’s and eventually be able to build a library that can effectively compete or be more comprehensive than Netflix’s offering.  You also gain all the advantages of Amazon Prime which includes their discounted 2-day shipping on all Amazon products to boot.

As it stands right now, if you are already an Amazon Prime customer, this is an added bonus as you can stream movies and TV shows with your account.  Though there isn’t a channel for consoles like Xbox 360, Wii and PS3 for Amazon streaming services, you can gain access to it from some Internet enabled Blu-Ray devices and Televisions.

If you are a current Netflix subscriber, there is no reason to consider converting as you would only find a much smaller streaming catalog, but this is something worth following for the future.

This is good news either way you look at it, as more companies start offering movie and TV Show streaming negotiations with movie studios will help drive contract rates down as well as create competition between competing companies which in the end will provide more value and selection of titles to the consumer.

Movie and Television Streaming is probably going to grow rapidly over the next 3-5 years and the question remains on whether the broadband and ISP’s will be able to keep up with the added bandwidth utilization and how they will handle the relatively same number of subscribers consuming much more bandwidth.

-Justin Germino

Justin Germino
Working in the IT Industry for over 13 years and specializing in web based technologies. Dragon Blogger has unique insights and opinions to how the internet and web technology works. An Avid movie fan, video game fan and fan of trying anything and everything new.
Justin Germino


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Justin Germino
  • Yeah Netflix has nothing to worry about at the moment since Amazon’s titles are about 3-5 years older, but as you stated there buying power really could impact everything.

  • Dana @ Tablet PC Info

    I think it is a good news to customers since they have more options for video HD streaming now.

  • This feature of amazon was not known to me. A new addition in my knowledge. I often buy computer books from amazon.

  • zammax@new mobile phone

    As a leading company, it is not that difficult if Amazon want to compete Netfilx with its power.. However it might be just a matter of time

  • Wiliam Tha Great

    I have heard some great things about Nexflix, but I have yet to give them a try. I’m really considering doing that as I need some new video games. ( :

    God bless,
    William Veasley

  • I have Netflix, but have trouble finding new movies. I usually only find movies that were released over 6 months ago. So I rather go to movies on demand by my cable provider and problem solved.

    Hopefully Amazon come with releases earlier than Netflix. It would be a great idea if they added an option to be able to watch newer movies for a slight higher monthly fee.

    • Yeah not sure, Hollywood is definitely keeping streaming movies delayed because they want to maximize DVD sales and as long a possible. So I think at least a few month lag on instant movies may exist for a long time unless Amazon or Netflix shell out the big bucks to license movies to stream sooner.

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  • Hey, it’s an interesting competition between Amazon and Netflix. In my opinion, Amazon is the ‘big brother’ here since from the technical point of view Amazon is ahead of the two. And ,if you consider cost, then also Amazon has got the advantage. However, Netflix is currently seeming to have an edge over Amazon. Let’s wait and see.

  • I noticed this the other day when I turned on my TV. I often buy shows on Amazon on demand..but the new streaming thing seems a bit lame. I have browsed through a lot of the videos and as you mention the selection is a lot smaller then Netflix…definitely not worth it to me – although cool.

    What I am curious about is the premium version of Hulu. Do you have any experience with that?

  • Amazon can’t beat Nexflix that easily.

  • I tried to stream Amazon to my Tivo once and it didn’t work at ALL. Worse, there was really no one to call for tech support. However, I LOVE streaming Netflix movies to my Wii or iPad. Works like a charm. No wonder Netflix is kicking everybody else’s butt in this industry!

  • Considering Amazon must be a huge DVD seller for most of the studios, they can probably negotiate a pretty good deal. Walmart should enter the space (beyond their vudo play) with a streaming subscription service, they sell tons of DVD so I’m sure Walmart has even more purchasing power. So far, I’m stuck with Netflix since they’re the only subscription service that is available on my PS3/Xbox/Wii/Bluray.

  • Sometimes I am bothered when big companies try to compete with smaller ones. It’s like an eagle challenging a robin for a flying race.
    For sure, Amazon will give Netflix a run for their money but I hope they will improve more their service to retain their customers. Competition is a very interesting game.

  • I think that NetFlix advantage is that it was first to the market with the online rental system. This brand is pervasive when thinking about this sort of product and therefore it will be extremely difficult to unseat them…Amazon may be able to do it but I have my doubts.

  • DebateShark

    I cant wait to see what happens to the prices of these plans

  • If the Amazon’s strategy is to expand its online streaming service to compete with Netflix, they will have to face a higher operating cost, reducing profit margins for the organization.

    • Looks like Xbox is getting into the home media streaming biz too according to the E3 announcement.

  • I am not so familiar with amazon too but I have always heard and even read it anywhere I go on post, articles and the like. I have known that amazon for being a reliable sources to all. Now, especially that is has this new streaming that could be very competitive even with Netflix.
    Thanks for the post!

  • Jonathan Hunter

    I’m been hearing from my friend who are into amazon about this new advantage. This strategy will likely to bring more customers to use amazon.

  • Thomas@Netflix outside the US

    Unless Amazon gets their streaming model build into tvs and set-top boxes I have a hard time seeing them compete with Netflix.