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Amazon (AMZN) Guns for Netflix (NFLX) With 100,000 Shows

August 18, 2011 10:53 AM EDT
Amazon.com, Inc. (NASDAQ: AMZN) announced today that its Amazon Instant Video now offers customers over 100,000 movies and TV shows available to purchase or rent on an à la carte basis.

In addition, Amazon Prime members can now watch more than 9,000 movies and TV shows included at no additional cost with their Prime membership. Amazon Prime is a membership program that gives customers unlimited free Two-Day Shipping with no minimum purchase for only $79 a year.

Amazon Instant Video allows customers to rent or purchase new release movies starting at $3.99, stream TV shows the day after they first air, and access their purchased video content from a cloud-based video library on any compatible device.

Movies and TV shows from Amazon can be viewed on a Mac, PC, or directly on a TV with any of the 300 compatible models of Internet-connected TVs, Blu-ray players and set-top boxes from partners including LG, Logitech, Panasonic, Roku, Samsung, Sony, Tivo and Vizio.

With Amazon expanding and developing its online media streaming content offered, what could this mean for the likes of Netflix (Nasdaq: NFLX) and BlockBuster?

Netflix currently has over 25 million subscribers, but has recently raised its membership fees for those on the DVD and streaming plans. Following the announcement by Netflix that its membership fees were being raised, Blockbuster announced that it would offer Netflix customers a free one month trial to switch over.

Unlike Netflix and Amazon, Blockbuster allows customer to rent video games and claims that it offers many new releases 28 days before they are available on Netflix. Blockbuster costumers are also allowed to return their games and movies through their stores. Blockbuster’s pricing is 1 disc at a time for $9.99 a month and $14.99 for 2 discs, unlimited on the number of disks over the entire month.

Now with three different companies offering similar services and in the end attacking the same user, who will win? Which company knows what the end costumer truly wants and feels they need, and at what price are they willing to pay for it.


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