Download This! New Competition For Netflix

While Netflix is the 800-pound gorilla in the online-video streaming space, competition is about to heat up. Amazon Prime members will have access to 5,000 movies and TV shows as part of's video-streaming service. Basically, it's a $79-a-year program that beats the price of Netflix's $95.88-a-year program.

Will the 'all-you-can-watch' offering give Amazon an edge against Netflix, the nation's top video-streaming service?

MediaTech Capital's Porter Bibb told CNBC that "this move by Amazon is not enough to topple Netflix." Bibb's "bullishness about Netflix is not based on operating metrics or its intrinsic value," but on his "belief that Netflix will be acquired, probably this year since it's 20 million subscribers are going to be tough for any competitor to overcome."

On the flip side, Canaccord's Heath Terry believes "it is a great hook for Amazon with their prime service." Terry sees this move as more of a marketing tool for the download and rental service that Amazon offers.

Growing competition or not, Netflix expects huge growth going forward, with 3.7 million new subscribers expected in the first quarter alone.

Donna Burton contributed to this article.


Questions? Comments? Write