Amazon’s New Video Service

I am currently working on my Oscar nominations list for 2011. In the meantime, I have started using Amazon’s Video On Demand service this week. Ironic that it was just announced (though I heard a few weeks ago via rumors) that Amazon will be offering a service where Amazon Prime members will receive free streaming of movies and TV shows. The cost is $79 a year, but as other bloggers have pointed out similar services provided by Hulu and the entertainment giant Netflix for $7.99 a month. $79 is a lot of money, and $7.99 isn’t all too much.That’s not a bad price, but when you consider the total cost of a year’s worth of that price, it would be just under $96. When you compare it like that, and then add the fact that Amazon Prime gives members free two-day shipping (amongst other things) and you have a lucrative service.

It may only appeal to Amazon fans at first, but I have a feeling that it will take off. Give it the rest of this year. People are discovering and exploring these new kinds of options. Hulu’s paid service is rather similar and very new to these other options. Netflix surely has a stronghold considering it had its foot out the door faster than the other guys. Blockbuster, try as it may, does not seem to compete too much more with Netflix. Blockbuster provides video games with their by-mail service, which is why I subscribe to them. However, they are almost playing a different market than Netflix, Hulu and Amazon. Honestly, I am surprised Blockbuster is still afloat, but I am grateful for it.

What do you think? Will Amazon’s new service soar? Is this the next big thing by the small company that is doing well amidst Borders filing for bankruptcy? Interesting week, with Oscars buzz all week long. Hope to get my predictions up soon.