Amazon is making it more economical for customers to buy into their popular Prime service. Instead of paying $79 upfront, customers can now pay the service on a monthly basis for $7.99, according to Hacking Netflix.

First introduced in 2005, Amazon Prime offers customers free two-day shipping on eligible purchases, plus streaming access to an ever-growing catalog of TV shows and movies. In 2011, Amazon announced that Prime members would have access to the Kindle Owners’ Lending Library. As such, members can rent one free e-book per month.

Amazon Prime, $7.99 per month

Amazon Prime, $7.99 per month

The new monthly Amazon Prime subscription is clearly designed to compete with Netflix and Hulu Plus as both offer $7.99 subscription plans. However, with Amazon, you get the added bonus of free two-day shipping.

This is a great deal, especially with the holiday shopping season here. After all, you can now get free shipping and then cancel the service later if you choose.

Amazon’s streaming offerings are available for iPad and iPad mini customers through the free Amazon Instant Video app, which launched earlier this year.

Source: Hacking Netflix