Amazon Reportedly Testing Monthly Pricing for Prime
NEW YORK (TheStreet) -- Amazon (AMZN) is reportedly testing a monthly subscription for its Amazon Prime service, as it seeks to take on Netflix (NFLX), Hulu and others in a more direct route.
The story was first reported in the Netflix-based blog, Hacking Netflix. Amazon will price its Prime service at $7.99 per month, putting it head-to-head with the cheapest Netflix plan. Currently, Amazon Prime costs $79 per year. A cost of $7.99 per month would cost users $95.88 per year if they were to pay month-to-month.
The story shows a screen shot of Amazon's Web site with the $7.99 per month charge, but a current look at Amazon's Web site shows the monthly pricing model has been removed.
Amazon could not be immediately reached for comment for this story.
Amazon, which has been expanding its content for the Prime service to take on Netflix and Hulu, also offers free two-day shipping with the Prime service. The Seattle-based online retailer recently reported third-quarter earnings which did not live up to Wall Street's expectations. Amazon lost 60 cents a share, including a 37-cent impairment charge for its investment in Living Social, on $13.81 billion in revenue. Analysts polled by Thomson Reuters were expecting a loss of 8 cents a share in the September-ended period on revenue of $13.92 billion. Amazon also recently signed a deal with rival Staples (SPLS) to place Amazon lockers in Staples' U.S. stores, as Amazon continues to build out its physical presence. Shares of Amazon were slightly lower in premarket trading Tuesday, off 0.1% to $234.10. Interested in more on Amazon? See TheStreet Ratings' report card for this stock. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_BullSelect the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
