Does Impending Amazon Prime Price Increase Mean Good News for Netflix?

Amazon is considering raising its price for Amazon Prime“>Prime Members. Currently Amazon Prime member pay 79/year for a Prime Membership. Included in membership is free video streaming, e-book lending and free 2-Day shipping.
Insiders are expecting new rate to be somewhere in the 99-119/ year range.

How is this good new for Netflix? Netflix knows only too well what happens when start charging more for the same service. Subscribers unsubscribe. Will Amazon Prime video streaming customers flock to Netflix?

My guess is they won’t. I suspect Amazon will come up with some kind of value added promotion that leave subscribers thinking they are getting more bang for their buck. Amazon has been right on the money so far with the evolution of their Amazon eco-system and offering high quality hardware at a non- Apple price. TheirKindle Fire is consistently rated as one of the top Android tablets on the market and heavly intergrated with Amzon spere.

The primary reason for subscription to Amazon prime is usually for the free shipping. Free e-book lending? Free video streaming? a bonus. Many Amazon Prime member likely don’t even know they have video service.

Expect that to change as Amazon puts the push on to nudge Netflix out of its top spot.

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