Amazon to take on Netflix with a movie streaming service

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Netflix could be about to get some competition with the news that Amazon are set to offer a film streaming service to its customers.

According to an article on The Hollywood Reporter, Amazon is rumored to be working on a service which will be bundled with its Amazon Prime service. Amazon Prime offers customers who pay a yearly subscription of $79 unlimited free two-day shipping. The service can be tried out free for one month before paying the fee. Items can also be upgraded to one-day shipping for $3.99 per item.

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This after Amazon recently bought European online movie rental business Lovefilm in a $318.6million deal. Lovefilm currently has 1.6 million customers across Europe who get the service by mail, and online with their PlayStation 3’s, internet TV’s, and PC.

Barton Crockett a Lazard Capital Markets analyst said Amazon “could become Netflix’s first meaningful streaming competitor.” It is not known when the service will be available, and Amazon could be still “working on its movie/TV content deals with all the majors,” According to BTIG analyst Richard Greenfield.