Amazon Faces Down Netflix by Creating Stronger Competing Service Offering

Amazon is making a concerted effort to gain market share from arch rival Netflix by rebranding its UK Lovefilm Instant streaming service and merging it with its Prime subscription service to create a single offering called Amazon Prime Instant Video.

The rebrand will see customers able to access both services for £79 per year. In contrast, these services would have cost £128 (35% more) before the merge - Amazon Prime charges members £49 a year for one-day delivery on purchases along with access to half a million Kindle eBooks, while the separate Lovefilm Instant allows members to access over 15,000 films and TV programmes for £72 a year.

Current Prime members will also be able to take advantage of unlimited streaming at the pre-rebrand price until their renewal date. There have been some complaints on Twitter however that Prime members will see their annual subscription rise by £30 when they renew, even if they have no interest in accessing the films and TV shows.

Nevertheless, this new combined offering from Amazon represents strong new competition to Netflix, who charges customers £5.99 a month, or approximately £72 a year.

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