Will Netflix Plan Changes Boost Amazon Prime?

Within days of its market introduction, Netflix grabbed a very significant share of the movie rental market. Its tiered rental plans and the dual-phase of the plans—DVDs or streaming—only escalated its popularity. Little did the growing membership crowd know that Netflix was long engaged in whispered conferences with IT folks to separate their streaming packages from the DVD rental packages.

You see, it all depended on network development. Netflix needed advancements in technology to ensure their streaming data was secure and advanced enough for smooth viewing, etc., etc. Well, they finally got it developed, tested and initiated. They separated membership into either streaming or DVD rentals—and nary the two shall cross again—unless you buy both higher-priced memberships.

The most popular plan with Netflix users used to cost $7.98 per month. It now costs $13.98 per month for either streaming or rentals. You have to pay $27.86 per month for what you used to get for $7.98—a $20 per month increase.

And your wish list is history.

So is notification if a desired movie is available, regardless of viewing mode.

Amazon Prime has offered a media rental program for some time. The rental program has never gotten top billing because Amazon offers it as a side-benefit of their highest-tier shipping promotion: $79 annually, recently up-scaled from $75, pays for the annual membership and unlimited two-day shipping on items you buy there.

Is the $79 fee worth the movies and shows you’re offered? Not really.

Netflix still has almost three times the movies that Amazon Prime does, and almost that ratio of TV episodes. And both the movies and episodes are a lot more familiar and in demand that Prime’s rolls. For instance, how many of you have heard of or know of the movie, “The Hunt for Red October?” It came out several years ago and was an almost-instant box office hit. It’s been shown several times on cable and satellite, and it still sells well in stores. Netflix has it.

Now, how many of you have heard of or know of a show entitled “Calliou?” Guess from whom you can stream it?

Netflix offers over 20,000 choices through either streaming or disk. Amazon Prime offers only streaming, and their offerings total only 6,000.

You note the point that Nexflix plans total includes both? Good catch. It does. So let’s be technically accurate and compare oranges with oranges, shall we?

Amazon Prime’s annual streaming cost: $79.
Netflix unlimited streaming cost: $167.76.

Are you really that happy with Amazon products, many of which are purchased DVDs, that you would forego blockbuster hits for old UK-based shows? If you lived in the UK or are a British expat who is homesick, maybe you would. But since both Netflix and Amazon are based in the US, and that’s where their most solid markets are, most of the viewing audience still prefers Netflix even with its higher prices and divided plan menu.

Still convinced that the higher prices are a deterrent? How long has it been since you’ve purchased a ticket to see a movie at a theater? Add that single-ticket price for every contemporary film that Amazon Prime doesn’t have that Netflix does, and what does your Amazon Prime-to-Netflix price comparison look like?

That’s why Netflix didn’t loose a whole lot of customers to anyone, much less to Amazon Prime.

We sure miss those waiting-to-see movie lists, though—hint, hint.

Article written by Holly Adams of Coupon Croc. Are you an avid online shopper looking for discounts? Visit us and grab a Littlewoods discount code 2011 for huge savings on all your purchases.

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  • Jenny

    I have both and the 2 day free shipping through Amazon is great! With gas prices so high I order a lot through Amazon and I love it. Who doesn’t like getting a package in the mail. And the prices are almost always comparable to my local stores if not cheapier! And also the streaming quality is so much better with Amazon. I am slowly watching more on Amazon and less on netflix. I only do the live streaming now that you have to pay more for their videos. I want to watch instantly not wait days to mail it then have it mailed back. I just use rebox for new releases and we have 4 in our town and we live in a small town! Plus I can always pay to rent a newer movie on Amazon and with their weekend sales the movies are often 1.99 and I dont have to worry about getting it back to redbox in 24 hours. I think Amazon may start to over shadow netflix soon, and I hope it does!

  • admin

    I tend to agree Jenny, the recent price hike from netflix does not bode well for it’s future…many people are making the transition to amazon already…only time will tell