According to the article, Amazon is now offering to its Prime members a $8.99 monthly access to channel such as Showtime and Stars. Due to this action, Amazon is step by step looking more like virtual cable company. Amazon also sells a streaming box called Fired TV which customer can access to the Prime video services such as Netflix, Hulu and other apps.
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Amazon officially launched its “Streaming Partners Program” on Tuesday, making its Amazon Video home page a one-stop-shop for streaming subscriptions.
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The application of the action of offering the program by Amazon to marketing is quite obvious. First of all, the company increases its competitive advantage by offering 2 dollars cheaper than CBS Corporation without Prime subscription for Showtime. Second of all, Amazon's offer significantly increases the switching cost to its Prime members, not only receiving the benefits of Prime, but the members now also have the chance to experience even more interesting features. Amazon's marketer has successfully apply one of the most important element of marketing which is increasing customer's value, the Prime members are now receiving more benefits more than ever.
http://www.wsj.com/articles/amazon-offers-showtime-on-demand-to-prime-members-1449595727?cb=logged0.6303167091682553
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