Amazon (AMZN) Targets Netflix (NFLX), Launches Streaming Video Service

Amazon.com (NASDAQ:AMZN) rolled out a streaming TV and movie service for its prime customers, taking a direct shot at fast growing rival Netflix (NASDAQ:NFLX).

Amazon announced on Tuesday that its prime customers, who pay $79 a year for free two-day shipping, can choose among 5,000 TV shows and movies such as "Syriana," "Doctor Who: Season 4," and "Analyze This" to stream through computers and devices such as Roku. The streaming video service is available to prime members at no additional cost.

Netflix shares fell 4 percent in opening trade on Tuesday while shares of Amazon were down 1.5 percent.

A representative from Netflix was not immediately available for comment.

The move ramps up the battle among Netflix, Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT), which are all vying to control the living room by letting consumers watch TV shows and movies directly from the Internet to TV sets and other devices like tablet computers.

At the same time, these companies are trying to woo media conglomerates such as Time Warner Inc (NYSE:TWX), Walt Disney (DIS.N), News Corp (NYSE:NWS), Viacom (NYSE:VIA-b) and CBS (NYSE:CBS) for their TV shows and movies.

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