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Amazon lets customers get streaming service without being a Prime member

<p>Amazon is going toe-to-toe with video-streaming service Netflix. </p><p><a href="http://www.amazon.com/Amazon-Prime-One-Year-Membership/dp/B00DBYBNEE" target="_blank">On Sunday</a>, Amazon introduced a monthly subscription service for Prime. Before that, the only way to get access to Amazon Prime was to purchase an annual membership for $99. </p><p>Amazon's monthly price sits at $8.99, including high-def quality when it's available. That's a bit more expensive than Netflix's most basic plan — $7.99 without HD video. But if you want HD on Netflix, it'll cost you $9.99, a dollar more than Amazon's price.</p><p>Amazon unveiled its new service plan one day before the release of Netflix's first-quarter earnings report.</p><p>Amazon and Netflix have been eyeing each other in an original-video streaming race of sorts. </p><p>Amazon's seen success with original <a href="https://www.youtube.com/watch?v=Xclds2kDf0g" target="_blank">shows like "Transparent"</a> and "The Man in the High Castle." </p><p><a href="http://mashable.com/2016/04/17/amazon-prime-video/?utm_cid=hp-hh-sec#_Jvp311Quiqc" target="_blank">But as Mashable points out</a>, "It still hasn't managed to garner the stunning success of Netflix hits like House of Cards, Orange is the New Black and Daredevil." </p><p><a href="http://www.investors.com/news/amazon-com-has-more-u-s-streaming-subscribers-than-netflix/" target="_blank">By the end of 2015</a>, Amazon Prime reportedly had 54 million U.S. subscribers — roughly 10 million more than Netflix.</p><p>But while Amazon is outpacing Netflix in potential viewers, according to <a href="http://www.investors.com/news/amazon-com-has-more-u-s-streaming-subscribers-than-netflix/" target="_blank">Investor's Business Daily</a> it's still behind Netflix on <i>actual </i>viewers. One reason: Not everyone who buys the $99 Amazon Prime membership is necessarily using it for video streaming.</p><p>Prime's $8.99 plan doesn't include free shipping, although the company is now offering a $10.99 monthly plan that does. </p><p><i>This video includes clips from </i><a href="https://www.youtube.com/watch?v=Q1AADPOdD78" target="_blank"><i>Amazon</i></a><i> and </i><a href="https://www.youtube.com/watch?v=8QnMmpfKWvo" target="_blank"><i>Netflix</i></a><i> and images from </i><i><a href="https://www.flickr.com/photos/flashpro/4156535452/" target="_blank">flash.pro / CC BY 2.0</a></i><i> and Getty Images.</i></p>
Posted at 9:36 AM, Apr 18, 2016
and last updated 2016-04-18 13:43:31-04

NEW YORK (AP) — Amazon.com Inc. is taking on Netflix and Hulu with its own stand-alone video streaming service, just weeks before Netflix raises prices for longtime subscribers.

New customers can now pay $8.99 a month to watch Amazon's Prime video streaming service. Previously, the only way to watch Amazon's videos was to pay $99 a year for Prime membership, which includes free two-day shipping on items sold by the site, and other perks.

At $8.99 a month, Amazon's stand-alone streaming service is $1 less than Netflix's standard membership and $1 more than Hulu's basic subscription.

Netflix said earlier this year that a "substantial number" of its longtime members who paid $7.99 monthly — and have been protected from price hikes — will now pay an additional $2 starting in May.

Amazon's decision to break off its video streaming service could cause some defections at Netflix, wrote Wedbush analyst Michael Pachter in a note to clients.

Both companies have invested heavily in original and exclusive programing. Netflix has "Orange is the New Black," ''House of Cards" and a couple of series based on Marvel comic characters. Amazon's offerings include "Transparent," ''Mozart in the Jungle" and previously aired HBO shows. With Hulu, users can watch many current TV episodes a day after they air on a network. Hulu is also growing its exclusive offerings, with "The Mindy Project" and "Difficult People."

Netflix Inc. declined to comment Monday. Representatives for Amazon and Hulu did respond to a request for comment.

Amazon may be a rival, but Netflix is also an Amazon customer. The Los Gatos, California-based streaming company uses Amazon Web Services to store its content and help run parts of its site and apps.

Besides its stand-alone video service, Amazon is also offering a new pay-as-you-go option for its full Prime membership for $10.99 a month and comes with free two-day shipping, video streaming and other perks. Amazon's website said that users who opt to pay $10.99 monthly, instead of the $99 annual fee, can cancel at any time. The $99 a year option remains the cheapest way for most people to get both free two-day shipping and video streaming, equaling about $8.25 a month.

Shares of Seattle-based Amazon.com Inc. rose $5.22 to $630.11 in afternoon trading Monday. Netflix Inc. shares fell $4.44, or 4 percent, to $107.07.
 

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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