AMAZON ADDS RIVAL NETFLIX TO KINDLE FIRE

Although it has acknowledged that the main reason why it priced the Kindle Fire so aggressively — at $199, it reportedly will sell for less than it cost to produce — was to attract users to its own movie sales and rental service, it said on Wednesday that a built-in app will allow Netflix subscribers to stream movies onto it, too. Amazon appeared confident that it offers a better deal; movies purchased on Amazon’s site can be stored indefinitely on its “cloud” and for $79 a year (less for students), Amazon not only includes membership in Amazon Prime, which includes free two-day shipping on many items bought on its site, but also access to over 10,000 movies and TV shows at no additional cost. Nevertheless, the inclusion of a Netflix app on the Kindle Fire, which will be available beginning November 15, surprised many analysts who had predicted that Amazon would never sanction it. MSNBC.com tech writer Wilson Rothman asked, “Who would pay for Amazon Prime for streaming video if they already have a Netflix subscription?” However, he added that “choice between quality services just makes the platform all the more alluring.”