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Amazon's New Netflix Competitor Is A Bad Deal For Most People

This move brings Amazon's video service into more direct competitor with services like Netflix and Hulu.

But a little simple math shows that it actually isn't a great deal unless you plan on canceling soon. Here's the breakdown:

- Prime Video as a standalone service will cost $8.99 per month, coming out to $107.88 per year.

- The complete Prime "bundle" will cost $10.99 per month, coming out to $131.88 per year.

- Amazon Prime, the whole package, costs $99 per year.

The benefit is that you can cancel any time you want, and are only committed on a month-to-month basis. This might serve as a good move for Amazon, allowing people to dip their toes into the Prime water before upgrading to the yearly plan. It also serves to underscore how great a deal Prime is.

But if you are already familiar with Prime, these new plans only really make sense if you see yourself canceling in the near future. 19% of Prime's current subscriber base has canceled in the last year, according to research by Parks Associates. 

From the article "Amazon's New Netflix Competitor Is A Bad Deal For Most People" by Nathan McAlone.

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Nearly 3 million subscribers ditched DirecTV last year. Will AT&T do the same?

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