For five years, Amazon has danced around Netflix in the online video ring. Now it’s going in for a knockout blow.
Amazon launched a standalone video streaming service late Sunday, offering a growing collection of original and syndicated programming for $8.99.
Amazon’s decision to do away with that arrangement could not be better timed to troll Netflix. Not only is Netflix scheduled to report its earnings on Monday, but it is also committed to raising prices for millions of its longtime customers to $9.99 next month.
“The timing is certainly not coincidental,” said Jan Dawson, an analyst with Jackdaw Research. In May, most Netflix customers will see a $2 monthly increase, so Amazon’s new offer is “clearly intended to scoop up some unhappy Netflix customers,” she said. Read more…
