Amazon has offered video on demand via a rental system for a while, but now they have stepped up to offering unlimited access to their on-demand library via an Amazon Prime subscription.

Prime instant videos provide unlimited, commercial-free, instant streaming of thousands of movies and TV shows at no additional cost with a [current price of] $79 annual Amazon Prime membership, which also includes fast shipping along with other benefits. Prime instant videos can be watched instantly on a Mac, PC and nearly 200 models of Internet-connected TVs, Blu-ray players and set-top-boxes that are compatible with Amazon Instant Video. All of the movies and TV shows are commercial-free and some are available in HD.

Considering Amazon Prime also gives you the shipping benefits on top of the newly added on-demand videos, this becomes a very interesting offer.

This obviously becomes a direct competitor to Netflix’s streaming service. Considering Netflix offers their streaming service for (currently) $7.99 a month which comes out to $95.88 a year, Amazon’s plan is $16.88 (18%) cheaper over the course of a year. However Amazon requires you to pay for a full year instead of monthly.

Of course, Amazon and Netflix libraries are likely to be different as I am sure this will lead to some shows only being available through one service or the other.

Amazon is offering a free month of the service, so if you are into watching on-demand videos then give it try.

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