Amazon takes on Netflix with monthly video streaming membership

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

NEW YORK (AP) — Amazon is taking on Netflix and Hulu with a stand-alone video streaming service.

Customers can now pay $8.99 a month to watch Amazon’s Prime video streaming service. Previously, the only way to watch Prime videos was to pay $99 a year for Prime membership, which includes free two-day shipping on items sold by the site. The video-only option won’t come with any free shipping perks.

At $8.99 a month, Amazon’s stand-alone streaming service is $1 less than Netflix, and $1 more than Hulu.

Amazon is also offering a new pay-as-you-go option for its full Prime membership that costs $10.99 a month.

Amazon.com Inc. shares slipped 0.1 percent before the stock market opened Monday. Netflix Inc. shares fell 1.3 percent.