Netflix Takes Another Jab

NEW YORK ( TheStreet) -- The chips keep stacking higher against Netflix ( NFLX), with Amazon ( AMZN) announcing a streaming partnership with CBS ( CBS) on Wednesday.

As part of the agreement, the e-commerce giant will allow Prime users to stream CBS' television content. The terms of the deal were not disclosed.

Starting this summer, Amazon will add 2,000 episodes to grow the total number of Prime instant videos to more than 8,000 movies and television shows, and offer full seasons for 18 popular television series, including The Tudors, Numb3rs, Medium, the complete Star Trek franchise, Frasier and Cheers.

This comes as Netflix has faced stark criticism from its own subscribers following a rate hike and outage.

Last week, the movie rental company announced it is splitting up its popular DVD-by-mail and streaming subscription combo into two packages, which will now cost $16 per month compared with $9.99.

Netflix also experienced an outage over the weekend that lasted eight hours. The company said internal issues were resolved.

But CNBC is reporting that Amazon is paying CBS 40% more than Netflix pays for its content from the network.

Shares of Netflix fell 2.7% to $279.42 in afternoon trading on Wednesday.

-- Reported by Jeanine Poggi in New York.

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