Amazon moves further into Netflix’s turf with low-priced TV

Amazon.com Inc.’s new push to expand Prime Video into more than 200 countries and territories includes a bonus feature: a price that undercuts Netflix Inc.’s in many markets. By going global, Amazon is following Netflix’s lead. The streaming-TV provider expanded its service to more than 190 countries earlier this year. In the third quarter, Netflix’s international revenue rose 65 per cent from a year earlier as it added local languages and shows. Now Amazon, which has a long history of pricing lower than competitors in markets ranging from electronics to books, is pursuing the same strategy, and going into markets where some analysts have said Netflix is too expensive. Amazon’s international foray will test whether its video service has standalone appeal, particularly as the company adds new shows and movies. Amazon recently released “The Grand Tour,” a reality show featuring the former hosts of “Top Gear,” a popular show around the world. As Amazon’s library expands, its low price could start to pose a threat to Netflix’s international growth. In some countries, such as the US, Canada and Belgium, Amazon includes Prime Video as part of a subscription to the free-shipping Prime service, which costs $10.99 a month or $99 a year. The service is also available on a standalone basis for $8.99 a month in the US. In places where it doesn’t sell physical products online, Amazon is charging $2.99 a month for the first six months for video, and $5.99 a month afterwards. Netflix’s pricing varies by country, but in many places its prices are close to the US, where its cheapest tier costs $7.99 a month. (Olga Kharif and Lucas Shaw/Bloomberg)