Amazon (NASDAQ:AMZN) last week launched a new app for Apple (NASDAQ:AAPL) iPad users, the ‘Amazon Instant Video’ for iPad, which enables its members to purchase, stream and rent movies-on-demand and TV shows instantly from the Amazon website to their iPads.
Users will have access to over 120,000 videos through Amazon Instant Video store while those with Amazon Prime memberships would at no extra cost have access to a selection of titles from Prime Instant Video too. The purchased and rented videos can be downloaded from ‘Your Video Library’ for offline viewing. The Whispersync technology will allow users to sync between devices and videos to resume from where they were left off across a plethora of devices supported. Users with TV Season Passes will have the episodes automatically available to them the day after they air.
Amazon competes directly with Netflix (NASDAQ:NFLX) in the online video streaming business. Netflix, however, is still far ahead of Amazon’s content library with 60,000 movies and TV shows. To gain share, Amazon has came out with a $79 per year Amazon Prime membership offering compared to Netflix’ $95 per year. Amazon hopes the lower price will draw customers away from Netflix.
We currently have a $222 Trefis price estimate for Amazon which is 5% below the market price.