In this plan, Amazon intends to spin the service off from Prime, which happens to be Amazon’s very own premium membership club that costs $99 annually, where it offers one the ability to access its Instant Video service. Perhaps this move to launch a streaming video service could be due to Amazon’s desire for a larger audience base. As a comparison, Netflix sports 33 million subscribers, whereas Amazon is said to have approximately 25 million Prime members who make use of its video service.
-Michael Pachter, analyst at Wedbush Securities, “If (Amazon does) do an ad-supported service, they will decouple it from Prime and that is a Netflix killer.” Do you agree with that statement?