In direct competition with Netflix in online streaming market
Amazon has confirmed it will provide its Amazon Prime customers some online video for free.
By introducing the subscription video-streaming service, the e-commerce website has put itself in direct competition with Netflix in the online streaming market.
At present, the DVD rental customers of Netflix can get online video for free. It lets consumers watch a certain number of minutes a month, depending on their investment.
Recently, Amazon began offering US subscribers to its $79-per-year Amazon Prime shipping service with access to 5,000 streaming movies and television shows at no additional cost.
Amazon already offers more than 90,000 movies and TV shows for rental or purchase on a one-off basis. It also recently acquired Lovefilm, a European DVD rentals business.
Amazon has signed up Sony Pictures and Warner Bros to provide older movies along with 13 independent providers including the BBC, Magnolia Pictures and National Geographic.
Netflix reportedly has 20 million subscribers, most of whom have streamed movies and TV shows from the Internet.