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Amazon eyes Netflix, Hulu with $7.99-per-month Prime plan

The e-commerce titan is still offering its $79-per-year plan, but now is letting customers try going month to month.

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Don Reisinger
Former CNET contributor Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.
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Don Reisinger
Amazon Prime has a new offer.
Amazon Prime has a new offer. Screenshot by Roger Cheng/CNET

Amazon is offering a new plan to Prime customers.

After a one-month free trial, Amazon customers can now sign up for Prime for $7.99 per month. The e-commerce giant previously offered Prime subscriptions only at $79 per year. That deal, which saves folks about 20 percent compared to the month-to-month offer, is still available.

Amazon's decision to offer a month-to-month offer puts it in direct competition with its chief rivals in the online-streaming business, Hulu and Netflix. Both of those companies charge customers $7.99 per month for access to their streaming libraries.

However, in addition to streaming video, Amazon's Prime customers get a bit more for their dollar. The company's Prime membership includes free two-day shipping on millions of items on Amazon, as well as the ability to borrow thousands of Kindle e-books at no charge.

(Via Hacking Netflix)