Amazon takes aim at Netflix, rolls out streaming video service
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Amazon.com rolled out a streaming TV and movie service for its prime customers, taking a direct shot at fast growing rival Netflix.
Amazon announced Tuesday that its prime customers, who pay $79 a year for free two-day shipping, can choose among 5,000 TV shows and movies such as “Syriana,” “Doctor Who: Season 4,” and “Analyze This” to stream through computers and devices such as Roku.
Netflix shares fell 4 percent in opening trade on Tuesday while shares of Amazon were down 2.6 percent.
The move ramps up the battle among Netflix, Apple, Google and Microsoft, which are all vying to control the living room by letting consumers watch TV and movies directly from the Internet to TVs and other devices like tablet computers.
At the same time, these companies are trying to woo media conglomerates such as Time Warner, Walt Disney, News Corp, Viacom and CBS in order to tap their TV programs and movies.
Netflix, traditionally associated with delivering its customers movies and TV shows through the mail in bright red envelopes, is shifting toward streaming video.
Netflix total subscriber base now stands at 20 million and it said that a vast majority of its U.S. subscribers stream content on a range of devices. Recently, it launched a streaming-only subscription plan in the U.S. for $7.99 a month.
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