SEATTLE (AP) — People who subscribe to Amazon.com's premium membership will now be able to watch movies over the Internet, just as they can through Netflix.
The Prime membership, which costs $79 per year, entitles people to free two-day shipping and low-cost next-day shipping. Now, subscribers can also watch roughly 5,000 movies and television shows through Amazon.com Inc.'s on-demand video service.
People can watch these movies on PCs and Macs, or with the help of about 200 Internet-connected TVs, set-top boxes and Blu-ray players.
The move could undercut Netflix Inc., which offers a streaming-only service for $7.99 per month, or about $96 per year. Netflix says its library includes "thousands" of titles.
Netflix shares fell $11.77, or 5 percent, to $223.74 in midday trading Tuesday. Amazon lost $3.38, or 1.8 percent, to $183.12.