Netflix might be doing extremely well for itself, having announced that this video streaming service is set to launch in both New Zealand and Australia later next March, but this does not mean that they are alone in such an industry. no sir, as Amazon could very well make a foray into this market, where it is touted that Amazon will roll out a free streaming video service. Of course, since there is no such thing as the proverbial “free lunch” in this world, such a streaming video service from Amazon would be supported by ads.
In this plan, Amazon intends to spin the service off from Prime, which happens to be Amazon’s very own premium membership club that costs $99 annually, where it offers one the ability to access its Instant Video service. Perhaps this move to launch a streaming video service could be due to Amazon’s desire for a larger audience base. As a comparison, Netflix sports 33 million subscribers, whereas Amazon is said to have approximately 25 million Prime members who make use of its video service.
-Michael Pachter, analyst at Wedbush Securities, “If (Amazon does) do an ad-supported service, they will decouple it from Prime and that is a Netflix killer.” Do you agree with that statement?
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