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_Bull
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV