Amazon.com 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.