Amazon’s Instant Video service comes packaged with Amazon’s Prime shipping service which costs $79 per year. While we have argued the streaming service doesn’t have enough brand recognition and is severely lacking in the user experience department, rumors have been circulating that Amazon may possibly launch a separate service to compete with Netflix.
Amazon already owns a streaming service called LoveFilm that operates in the UK. The service which also provides DVD, Blu-ray, and video game disc rentals recently reached a milestone of two million subscribers.
UPDATE: Amazon will apparently not launch a standalone service, or bring its LoveFilm service to the U.S. to directly compete with Netflix. At least, this is what Amazon’s Head of Digital Video Content Acquisition Brad Beale told GigaOM in an interview. “The bundle of benefits that come with Amazon Prime make perfect sense to offer to customers,” said Beale.