Amazon Adds Free Streaming Video for Prime Members

Having effectively vanquished Borders and Blockbuster, among others, Amazon.com and Netflix are squaring off for a battle of the virtual titans, ratcheting up their streaming video offerings and jockeying for position as would-be competitors try to figure out how to get back in the game.

In the latest skirmish, Amazon.com has added a new benefit to its $79-per-year Amazon Prime membership – unlimited, commercial-free, instant streaming of 5,000 movies and TV shows.

Amazon prime members, who also get free two-day shipping and reduced one-day shipping rates, will be able to stream the movies and shows directly to PCs, Macs or any of nearly 200 models of Internet-connected TVs, Blu-ray players and set-top boxes, said Amazon Founder & CEO Jeff Bezos.

Amazon already sells and rents movies online on an on-demand basis, with most priced from $1 to $5. The a la carte service offers a much more extensive library than the free-to-Prime-members service, with more than 90,000 films and TV shows.

Netflix offers DVDs by mail and free online video with most of its subscriber packages.  All of its video selections are included in the monthly subscription, with no on-demand prices. 

Amazon is thought to have about 5 million Prime members in the U.S. Netflix recently said its subscriber count exceeds 20 million.