Amazon steps on Netflix's toes with streaming TV and movie service - is Canada next?

by Knowlton Thomas is rolling out a TV and movie streaming service to U.S. customers. The service is granted to "Prime" customers, who pay $79 per year for unlimited two-day shipping on all orders. Now, Prime customers will be able to stream more than 5,000 TV shows and movies. The annual cost breaks down to less than $7 per month—less than Netflix at $8 per month, albeit with a currently smaller library.

Regardless, it's a direct shot at Netflix, and if Amazon moves this service into Canada—which is fairly likely—it would be yet another crushing blow against a company who has had anything but a warm welcome to the country. How far will Amazon go to step on Netflix's toes, and will Netflix fight back? It's a delicate situation, considering that Netflix relies on Amazon for web hosting services.

Netflix shares dropped more than four percent at the news, but Amazon shares also dropped, though only two percent.

Vancouver, British Columbia, Canada, Inc. (NASDAQ:AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection., Inc., seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. and other... more

Los Gatos, California, United States

With more than 15 million members, Netflix, Inc. [Nasdaq: NFLX] is the world’s largest subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. For $8.99 a month, Netflix members can instantly watch unlimited TV episodes and movies streamed to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes. With Netflix, there are... more

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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys hiking, tennis, and martial arts. more

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