http://adage.com/article/media/amazon-prime-finally-head-head-netflix/238154/
Amazon is testing out a monthly fee of $7.99 for its Prime membership which is a move towards competing with the likes of Netflix and Hulu.
Although membership fees on an annual basis may be higher than the original fees, it will provide an opportunity to tap into the demands of shorter term customers, and potentially take customers away from Netflix/Hulu. This will also allow amazon to tap into a much greater audience base for content downloads, and at the same time provide a wider wudience for digital advertising. Increased streaming of digital content will provide more revenue generation from advertisements placed amongst the distributed content, a win-win for Amazon. It will be interesting to see how Amazon's loyal customers react to this new approach...
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