Watch Out Netflix – Amazon About To Launch Video Streaming Service

Rumors about Amazon's potential Netflix-style video streaming service have been making rounds for the past six months. However, Engadget has now been tipped by someone with screenshots of the alleged service. The screenshot shows options to stream unlimited amount of videos and the service will potentially be bundled with Amazon's video on demand offering.

amazonnetflix Rumors about Amazon’s potential Netflix-style video streaming service have been making rounds for the past six months. However, Engadget has now been tipped by someone with screenshots of the alleged service. The screenshot shows options to stream unlimited amount of videos and the service will potentially be bundled with Amazon’s video on demand offering.

Wall Street Journal has been drumming up noise about a potential Hulu and Netflix competitor from Amazon for quiet some time now. Back in September the Journal initially reported that Amazon is working on a video streaming service. That report received another follow up in December when WSJ further detailed that the Amazon’s service will be offered for free to Amazon Prime members.

If the screenshots are to be believed, the service will enable users to either watch a movie for free online, or rent it for three days for $3.99 or to buy it for $11.99.

Furthermore, it seems that WSJ was spot on and the service will be available for free to Amazon’s Prime members i.e. people who pay $79.99 per annum on a large number of products sold on Amazon. According to the screenshot:

Prime:

Your Amazon Prime membership now includes unlimited, commercial-free, instant streaming of 5,000 movies and TV shows at no additional cost.

By doing some quick over the napkin calculations, one would realize that for Prime members (who already pay $79.99) the service would cost around $6.58 a month, as compared to the $8 a month that Netflix charges for its streaming plans. It seems that Amazon is planning to undercut Netflix in a big way, if and when it launches its service.

Amazon hasn’t responded to these reports officially as yet, and there has also been no hints about whether the video streaming service from Amazon would also be available on a monthly basis, or if it would be $79.99 per year or nothing.

Amazon has also recently acquired LoveFilm, a European Netflix of sorts for around $200 million, making its ambitions clear about what it wants to do in this space.

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