In a seemingly direct challenge to reigning streaming services Netflix and Hulu, Amazon Prime has bundled its TV and movie privileges into their own separate subscription - Prime Video at $8.99 a month. This new monthly subscription would run you $107.88 a year in contrast to the $99 annual charge for the original Amazon Prime package.
Netflix also recently announced a price increase from $7.99 a month to $9.99 a month starting in May. Could Prime Video have come at a more convenient and relevant time? I think not.
Amazon has never done anything like this before, but they were eager to provide options that could be available to a variety of people - a Prime that is not one-size-fits-all without an annual commitment. If you're already paying $99 a year for the Amazon Prime bundle, which includes fast and free shipping, a music library, and a collection of TV shows and movies, don't worry - it's still there. This high-price bundle is still the best value available because you get all of the perks for only $8.25 a month. Amazon will also be offering this complete Prime bundle at a monthly rate of $10.99, so as long as you're willing to pay an extra $32.88 a year to be noncommittal, you can still receive all the benefits.
This new monthly option was tested with Sprint customers last month, during which users were able to add a monthly Prime bundle to their wireless bills each month.
What do you think of this Amazon's new alternatives? Is the price of not having to commit to a year-long package worth it? Or is another monthly cost something you want to avoid? We want to hear your thoughts!