Streaming-Video May Feature Amazon Vs. Netflix By PATRICK SEITZ, INVESTOR'S BUSINESS DAILY Posted 06:59 PM ET Featured Stocks AAPL
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Time Warner Inc * Top-Rated Company 1" 2" 3" After having the market largely to itself in subscription online video, Netflix (NFLX) could soon face serious competition from e-commerce king Amazon.com (AMZN).
Amazon is prepping a rival offering tied to its $79-per-year Amazon Prime service, which gives customers unlimited free two-day shipping for books and other items. As an incentive to sign up, Amazon is looking to offer an online video service as well for no extra charge.
Analysts see the move as a test by Amazon to offer a streaming video service to rival that offered by Netflix.
Netflix CEO Reed Hastings (left) sees competition from Amazon, led by CEO Jeff Bezos, and from Apple and Google. AP View Enlarged Image
Amazon currently offers downloadable movies for rent a la carte, but has yet to go head-to-head with Netflix in the all-you-can-eat subscription video space.
Screenshots of the new Amazon unlimited streaming video service were posted Saturday on AOL's (AOL) Engadget website. They show Amazon offering instant streaming of 5,000 movies and TV shows at no additional cost to Amazon Prime members.
"It does seem as if Amazon is poised to launch a competitive unlimited streaming service within the next month or so," said Marianne Wolk, an analyst with Susquehanna Financial Group.