Amazon introduces Prime monthly membership
Amazon introduces Prime monthly membership Getty Images

Amazon has introduced new monthly subscriptions for its Prime membership services, which will put it in direct competition with Netflix.

The company's new offering for movies and TV shows has a subscription amount of $8.99 (£6.33) a month. Another subscription that costs $10.99 offers a bunch of Amazon Prime services such as two-day shipping for movies and TV shows, music streaming, ebooks, early access to lightening deals and same day delivery in eligible areas.

Until now, Amazon Prime was only available for members with a yearly subscription of $99, which is available for a 30-day free trial. You may cancel your Amazon Prime membership anytime you wish to.

Amazon Prime is a huge success, but customers going in for the annual membership will have to pay an upfront fee of $99. However, under the new subscriptions, customers will not have to deal with the yearly subscription amount. But those who go in for Prime Video membership will pay $8.88 and those with Prime (monthly) membership will end up paying $32.88 more in a year than Prime (annual) members.

Amazon's Prime Video, the video-only service, now makes it easier for customers to compare prices with Netflix, which has been offering its services on a monthly basis, without any annual payment. Deals on Netflix range from $7.99 to $11.99 per month, reports the New York Times.

According to a survey conducted by Piper Jaffray Companies, an investment bank and asset management firm, Amazon Prime adoption has increased and about 51% of households with teens subscribe to its services. The survey also reveals there are about 57 to 61 million Prime households in the US. It also states that teens are spending more time on Netflix and YouTube than on traditional TV.

Amazon seems to be serious about expanding its video services by making a large amount of content available for streaming. It managed to get services like Downton Abbey and Mr Robot, shows not available on Netflix. Besides, Amazon has invested on original content such as award winning shows like Transparent and Mozart In The Jungle.