Amazon aiming to rival Netflix with new video streaming service

From CNET News.com: Amazon may be looking to cut into Netflix's action by launching a new video streaming service.

Citing information from industry sources, The New York Post said that the new service would expand beyond Amazon's current Instant Video by launching as a standalone, subscription-based business.

Amazon's Instant Video is free with a $79 Amazon Prime subscription, though non-subscribers can buy or rent individual movies and TV episodes on a per-title basis. In contrast, the new service would borrow a page from Netflix's business model. Amazon is just currently trying to figure out what to charge, one source told the Post.

Netflix is even anticipating the new video offering from Amazon.

In a letter (PDF) directed to shareholders yesterday, Netflix said that "we expect Amazon to continue to offer their video service as a free extra with Prime domestically but also to brand their video subscription offering as a standalone service at a price less than ours."

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