The Amazon Prime subscription service offers its members a variety of benefits, including free two-day shipping on eligible items

Prime also offers members access to streaming video and music, and exclusive deals. As of this writing, its annual price tag is $139. A CNBC article sets out to address whether the subscription is worth that price, outlining the service’s key perks and who’s likely to benefit from it the most.

One of the most important pieces of Amazon’s corporate empire? Its Prime subscription business

Prime drives customer loyalty and boosts Amazon’s revenue through its monthly and yearly fees. The key components included with a Prime subscription include free two-day shipping on eligible items, as well as access to services like Amazon Music and Prime Video.

The world's top streaming services (by subscriber count)

With almost 270 million paying users, Netflix is the dominant force in streaming entertainment. But after enjoying a first-mover advantage for years, competitors are beginning to catch up. Most notable is Amazon, which leverages its Prime subscriptions to bundle Prime Video, and has amassed an estimated 200 million users. See an updated tracker of the world's biggest platforms by audience.

Netflix, explained

From offering an internet-based, mail-order Blockbuster alternative to its eventual status as a market leader in streaming entertainment, Netflix has led nearly every major paradigm shift in the television and movie business since its inception.

Netflix positioned itself as a logical alternative to movie rentals

At its inception, Netflix disrupted the entertainment industry, in particular the movie rental business, by mass mailing DVDs to customers who made selections online. That brand is evident in this 2004 commercial.

The streamer no longer just offers TV and movies

As a means of keeping existing subscribers engaged, and to add new users on the margins, the streaming service began releasing its own original video games. Many are based on existing Netflix titles and franchises. See their current offerings here.

Amazon expanded its business and diversified its offerings by acquiring companies

Amazon’s retail and cloud businesses have been key drivers of the company’s growth over the years, but they haven’t done all the work by themselves. Companies Amazon has acquired include the video doorbell maker Ring, the grocer Whole Foods, the streaming service Twitch, the shoe retailer Zappos, and the film studio MGM.

Netflix's original movies are designed to play in the background, appealing to audiences who watch them passively, often while doing chores or looking at their phones.

Netflix started in 1997 as a mail-order DVD rental service

The first Netflix customers selected DVDs from the company’s website and received and returned them through regular mail. The approach included no late fees and quickly added the ability to rent an unlimited number of DVDs for a flat monthly fee, with the company passing 1 million subscribers in 2003.

Netflix is the dominant streaming service

As of 2025, Netflix had amassed more than 300 million subscribers globally and saw quarterly revenue over $11B.

Most of Netflix's subscribers are outside the US

Accordingly, each year, Netflix releases an expansive slate of international shows and movies to subscribers worldwide, including hits that crossed over to the US, like "Squid Game."

How Netflix changed TV

In April 2017, Netflix reached 100 million subscribers worldwide—a figure that hit 300 million by 2025. With 50 million in the US alone, it has revolutionized the way people consume entertainment. Newsweek takes a look into the company's history and how it became the dominant force in entertainment.

A 2002 profile of unprofitable Netflix as it bet on a subscription model

The streaming behemoth saw the potential in subscriptions early, and in this 2002 profile CEO Reed Hastings was already talking about plans to offer "downloadable" movies. The profile serves as a historical artifact confirming the startup's risky bets and showcases the contingent factors that led to its success. (Some users may experience a paywall.)

Twitch is a live-streaming platform popularized via the broadcast of esports events and users playing video games.

How Netflix battled Blockbuster

The most consequential business stories involve intense rivalries. The story of Netflix versus Blockbuster is one of those: an agile upstart versus an entrenched incumbent. This nine-part podcast explores the key strategies and pivotal moments in the rivalry that upended the entertainment business, setting the stage for the streaming wars.

In recent years, Netflix has shifted away from scripted originals toward low-cost reality programming.

Content frequently disappears from streaming services due to rights negotiations and tax incentives.

Netflix has sometimes struggled with technical aspects of live-streaming

Anne Aaron, Netflix’s senior encoding tech director, spent a decade improving how Netflix streams its content. Then came the challenges of live events. Netflix has experimented with live content like stand-up comedy and sporting events. In this interview with The Verge, Aaron walks through the associated technical and coding challenges.

Contrary to popular belief, Netflix didn't kill Blockbuster, though it did intentionally position itself as an alternative to the movie-rental store.

Amazon's largest profit engine is its cloud-computing platform Amazon Web Services, which generated over 60% of Amazon's total operating income in 2024.

Netflix's recommendation algorithm was born from a $1M competition

In 2006, Netflix launched an open competition for data science teams to develop approaches to outperform its recommendation algorithm. Three years later, the prize was awarded after a group of competitors merged, developing a solution that beat Netflix's internal algorithm by more than 10%. Today, recommendations are based on what users watch, particularly via bingeing.

HBO inspired Netflix and vice versa

Netflix's pivot towards original, prestige content would not have been possible if HBO had not blazed that trail decades earlier. Ironically, HBO later used Netflix as a business model when reinventing itself as a streaming app.

Amazon has experienced relentless, if occasionally bumpy, growth since its founding

From its founding in 1994 to a slew of acquisitions and new products and services launched in the decades since then, Amazon has experienced relentless, if occasionally bumpy, growth. This timeline from The Verge lays out some of the major events in the company’s story, including its IPO, rollout of its lucrative cloud-computing division, and much more.

Amazon accounts for roughly 40% of all US online retail sales—a much larger piece of the pie than its competitor Walmart

Although Walmart is roughly 30 years older than Amazon, the e-commerce giant has a significant lead in online US retail sales: Walmart's share is roughly 7%. Season 33 of the podcast "Business Wars," hosted by David Brown, is all about one of the most intense rivalries in all of retail.

YouTube occupies more US screen time than Netflix

As consumers continue to shift their viewing activity away from traditional cable and broadcast TV, they’re spending an increasing amount of time streaming content, much of it on YouTube. In fact, Nielsen data from August 2025, shows that YouTube accounted for 13.1% of US screen time, compared to Netflix’s 8.7%.

Amazon operates a 'flywheel' business model

Central to any understanding of the multifaceted nature of Amazon's business today is the concept of the "flywheel" at the heart of the company. Put simply, it's an idea that refers to a self-reinforcing cycle that drives the continuous growth of Amazon's various businesses, including its retail arm, its Prime subscription service, and more.

The platform's ease of use relies on a complex architecture

Hitting "play" on Netflix is easy, but it triggers a multistep process that fetches the selected content, converts it for your screen, and finds the closest server to deliver it in the highest quality.

Netflix's 'KPop Demon Hunters' is the streamer's most-watched original movie

The 2025 film, which combines K-pop music and Korean mythology, became a big hit on the streaming platform. It was equally successful in its limited theatrical release, shooting to the top of the box office rankings.

Amazon's success is attributable, in large part, to founder Jeff Bezos’ vision

Bezos parlayed a career on Wall Street into founding an online bookstore that would evolve into the largest online retailer in the world. Bezos’ story is characterized by his relentless focus on innovation and on the customer experience at Amazon.

'House of Cards' was Netflix's first original prestige drama

When Netflix released the David Fincher-directed political drama series "House of Cards," it marked a watershed moment for both the company and the broader entertainment industry, dramatically shifting how audiences consumed televised entertainment.

In 1994, Amazon was founded as an online bookseller

Books were just the start, as founder Jeff Bezos' ultimate goal was to create an "everything store," using the internet to transcend the physical limitations of brick-and-mortar retail. The Seattle-based Amazon gradually added CDs and consumer electronics, becoming a dominant e-commerce player in the late 1990s, and one of the few dot-com companies to make it through the bust.

Temu mainly sells off-brand items, while Amazon offers brand names

A personal finance expert breaks down the key similarities between Temu and Amazon in a quick video so consumers can decide which is the better choice for their shopping needs.

Amazon founder and billionaire Jeff Bezos' wealth primarily stems from his Amazon ownership stake.

Netflix's 'Kaleidoscope' experimented with non-linear storytelling

Netflix has regularly experimented with how it releases episodes, but its miniseries "Kaleidoscope" experimented with linear storytelling by crafting a show that supposedly allowed viewers to enjoy the show in any order they pleased.

A deep dive into A24's top ten films

The film studio has released over 100 films since it's founding in 2012, so where should a newcomer begin? This extended video breaks down ten of the best of the studio's productions, showcasing its quality and variety. (Note: The video contains...

HBO's success inspired Showtime, AMC, Netflix, and more

HBO’s success in the early 21st century bred plenty of imitators, who were now more willing to embrace darker, more challenging series like “Weeds,” “Mad Men,” “Breaking Bad,” and “House of Cards.”

Amazon has historically opposed efforts among its employees to unionize

Amazon has done everything from creating mandatory anti-union meetings to hiring union-busting consultants, and even engaging in employee surveillance. Such efforts have proven to be a lightning rod for pro-labor groups.