Amazon Prime Video announces move to stay ahead of stiffer competition

Amazon today announced a new partnership to bring even more content to its Prime video service. Prime is, of course, more than just video — it is also free second-day shipping on all orders (which often arrive next day) and a lending library for Kindle customers, allowing for one free book per month.

Now, in the face of growing competition from rivals, the retail giant has snagged a deal with TV network A&E, which will bring “popular series from A&E, bio, HISTORY and Lifetime to the Prime Instant Video service.”

Amazon announces these deals fairly regularly, but there are a couple of reasons why this particular one is a bit more important. First of all, it is a slap in the face of rival Netflix, who previously had, and lost, this deal. Second, there is a looming problem on the horizon and it is, potentially, a big one.

Redbox, the company who brought us those irresistible kiosks, has teamed with Verizon and plans to launch a competitor in early 2013. I have been among the early beta testers for the service and, I must admit, it is compelling.

So, is this enough to keep Amazon ahead of the market? Certainly Netflix still seems to be the dominant player, but Amazon is moving steadily up and now Redbox is coming. Competition, of course, is good for all of us.