Is Prime Appealing Enough to Shutdown Netflix?

There are many Internet-based movie rental and TV series subscriptions available, which have become very popular in the last few years. Many people have noticed the closing of many movie rental stores, like Blockbuster. These closings are due to the more convenient way of receiving and watching movies or TV series; one of the most popular and well-known subscription services that has somewhat directly shut down movie rental stores is Netflix. Just as technology has changed so many things in the past decade, we are now seeing the effect that technology has on movie rentals.

Netflix allows subscribers to view movies and TV shows unlimitedly for $7.99 a month, or around $96 a year. People watch these rentals over the Internet on their TVs with a Play Station 3, Xbox, or Wii gaming system; viewers also have the option of streaming the rental on a computer. Another service that Netflix offers to subscribers is the unlimited rental DVDs that they mail to the subscriber for rental without due dates, and therefore no late fees; this service is $2 extra per month. Blu-ray is available on Netflix. In order to allow potential subscribers to try it before buying it, they allow a free 1-month subscription that entitles each Netflix service to be used.

Amazon has recently put out a product called Prime that allows unlimited, instant streaming of movies and TV shows. It is $79 a year. The videos are capable of being viewed on computers, TVs, Blu-ray players, and many other TVs that are able to connect to the Internet. HD is available for Prime. This membership has other benefits than just movies and TV shows for a cheap price per year; it entitles members to fast 2-day shipping on Amazon products. Prime, like Netflix, entitles potential members to a free 1-month trial.

There is not much of a difference between Netflix and Prime. Both services allow unlimited, instant streaming of movies and TV series, and both require Internet connectivity. The costs are slightly different, with Amazon’s Prime being $17 cheaper per year. It also gives members extra benefits, while Netflix services only include movies and TV series. Netflix has a wider library than Prime does, but both offer new releases, which is a common category of movie rentals. Neither service has commercials or ads in their videos, yet both services provide HD streaming.

An interesting topic is what will be the next big subscription service that beats out Netflix. Will it be Amazon’s Prime? There is much hype about Prime, but is there enough of a difference in it, including its extra benefits, to encourage people to subscribe to Prime instead of the so well known Netflix? And, is Prime appealing enough to draw Netflix subscribers away from Netflix and onto Prime?

Because there is such a small difference in Netflix and Prime, the best way to decide which subscription is right for each individual’s lifestyle is to try out the free trials on each of the services. Some households might not have the correct TV components to work with one service, and therefore the other service would be the right option for them. The movie and TV series may also be slightly different, therefore getting a feel for each of the libraries would be a great way to decide which service is a better personal fit.

Although Amazon’s Prime is not yet appealing enough to take over what Netflix has become, it has high potential to become the next “big thing.” Just as Netflix ended Blockbuster’s business, Prime may be the next Internet-based movie rental subscription that outruns the huge accomplishments of Netflix.