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posted on 18 April 2016

Amazon On The Attack

by Felix Richter, Statista.com

-- this post authored by Niall McCarthy

In an attempt to gain market share, the Seattle based online retailer Amazon has come up with a new pricing model for its subscription video on demand (SVoD) service.

From now on users can subscribe on a monthly basis and have a video-only option. Originally, customers could only put their name down for a yearly Prime subscription, which included other perks like free two-day shipping for Amazon orders and music streaming.

Amazon's new subscription plans are seen as a move to challenge Netflix, the market's top dog as the below Statista infographic shows. Amazon got into the SVoD game much later than Netflix, which has more than 75 million subscribers globally. It has long been available on a monthly basis, without the option of a yearly subscription. The third provider, Hulu, is currently on offer to users in the United States only.

Amazon now offers two monthly subscription plans in addition to a yearly subscription plan. There's a basic video-only subscription priced at $8.99 a month and a $10.99 a month plan, that still includes the other Prime perks. Customers still willing to commit are rewarded: The month-by-month subscription will cost $32.88 more than the yearly subscription for the full Prime version.

Subscribers to subscription video on demand services in the US

Infographic: Amazon on the Attack | Statista

You will find more statistics at Statista.

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