Tuesday, 04 February 2014 05:57
Amazon has an interesting service known as Amazon Prime. What this essentially is, is a service that takes free two day shipping and premium video streaming as well as eBook lending and marries them together for a $79 a year. This adds up to about $6.58 a month and is a bargain. Sadly, Amazon is toying with the idea to raise the price by $20 to $40 a year! This might have a very adverse effect on this service. Netflix may be the winner since they are Prime's main competitor.
Netflix learned the hard way what online video subscribers do in the face of a massive price hike. They scream, they yell, and then -- they flee. Amazon is considering a price hike of its own. The e-commerce giant said Thursday it is considering raising the $79 a year membership price for its Prime service, which combines free two-day shipping with premium video streaming and e-book lending, by $20 to $40. That's only good news for Netflix. But how good? The issue is complicated not only by the lopsided competition between the two but also by Netflix's own tinkering with its pricing structure.