Amazon Challenges Netflix and Hulu With This New Plan

Amazon (NASDAQ:AMZN) appears to have upped the ante with its new subscription plan, which might even compel Netflix (NASDAQ:NFLX) and Hulu (NASDAQ:CMCSA) customers to switch.

The Seattle-based company is providing an attractive option for customers to pay $7.99 a month instead of the yearly subscription fee of $79 for Amazon Prime. The new $7.99 price tag, which actually makes a year’s subscription more expensive, may be an easier pill for customers to swallow simply because they’re not locked into the service for a full twelve months.

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The $7.99 price tag includes a whole package — free shipping, instant streaming, and e-book access. Netflix and Hulu simply offer streaming for the same monthly price. But it was quickly noted that Amazon doesn’t offer as wide of a selection of movies and TV shows as do its rivals.

This is a tactical approach on Amazon’s part, considering the holiday season. This method will allow people to try it and dump it if they don’t like it. By making a trial so much less costly, Amazon is eliminating most of the risk that might have made interested consumers hold off.

Amazon isn’t offering this package to everyone at this moment. This was first spotted on a blog called Hacking, a site that exclusively covers Netflix news.

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