Amazon’s competition with Netflix is increasing by the day and with the latter expanding its reach across the globe, Amazon has decided to extend Prime Video’s discounted pricing across the globe.
Taking many by surprise last December, Amazon announced it was making its on-demand streaming service, for which it would typically charge USD 5.99 a month, available in 242 countries and territories at an introductory price of USD 2.99 or EUR 2.99 per month for the first six months. This pricing is only for regions that do not have a Prime subscription service already available. In other regions – like India and US – Amazon Prime subscribers get the Prime Video service bundled in.
The introductory discounted pricing has been extended until the end of the year and will renew at USD 5.99 (or EUR 5.99), thereafter. New users will also be able to avail the introductory offer throughout this year.
The move to extend the markdown period will help Amazon retain customers as it works on broadening its content catalog, a key area where it trails its California-based rival Netflix, analysts said.
One of the primary questions would be whether Netflix should worry about the discounted offering. Netflix charges $9 to $10 for its monthly subscription. Analysts don’t think so. On the contrary there are those who believe that Amazon’s move to keep Prime Video’s prices low suggests that the company isn’t garnering enough momentum that will propel it ahead of Netflix.
While it’s unclear which service has a larger catalog of movies and shows, the general consensus among customers is that Netflix’s offering is larger and more importantly better. Netflix also has more original shows available on its service. In Canada, the company maintains several enticing deals, including student discounts.
But at some point, Amazon will hope to that it is able to convince enough customers to pay the full-price for Prime Video. And that remains the big question.