With an annual subscription of $99, Amazon’s loyalty program known as Prime, already offers original TV programming and access to digital entertainment products, such as Prime Music and Prime Video, as well as the delivery of purchases within one hour.
Amazon, however, has a long way to go to catch up with YouTube. Available since 2005, the free service is supported by the ad model, but last year, the site also created a subscription option for $ 10, called YouTube Red.
Videos of Amazon’s service will be available for the users in the United States, Germany, Austria, the UK, and Japan. The company has also signed partnerships with several services such as Conde Nast, The Guardian, Mashable, and Mattel.
Amazon has made major investments in the video segment. In a note released to clients on Tuesday, Bernstein analyst, Carlos Kirjner, estimated that the company will spend about $2.9 billion in video content for Amazon Prime this year.
The company also offers a monthly subscription for your video program for $10.99 and plans to offer its streaming video service as a separate service for a monthly fee of $8.99.