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Amazon Prime to start offering monthly subscription packages

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Starts at $8.99 a month

Amazon is set to debut a new monthly streaming package for Prime members that would directly challenge Netflix and Hulu's current subscription base, according to The Hollywood Reporter.

New subscribers can choose to pay either $10.99 a month for Amazon Prime or $8.99 for Prime Video. At $10.99 a month, the new subscription method is more expensive than the current model ($99 a year), but the new package does give subscribers more flexibility with their plans and the option to cancel monthly.

Right now, $10.99 a month is the third highest rate of all the streaming giants. HBO Now goes for $14.99, with Hulu just behind it at $11.99 a month. However, news of Amazon's monthly subscription package comes just a week after Netflix announced that it would be raising prices for its own subscribers from $7.99 to $9.99 a month.

Thanks to digital series that are the equal of their cable television rivals, streaming video services are no longer an afterthought. YouTube recently launched its own original content section, YouTube Red, that charges a premium price for access to videos.

The new monthly package for Prime will also include the other services that Prime members enjoy right now with their annual plans, including Music, Video and free shipping. Amazon hasn't disclosed just how many members it has using Prime, but giving subscribers the option to go monthly is definitely a way to improve those numbers. Netflix, the biggest of all the streaming services, boasts over 70 million users worldwide, with 44 million users in the United States.

Amazon's new monthly subscription offer will begin next month.