Amazon.com on Tuesday announced its foray into the video-streaming service sector, in a move that put it in direct competition with with the likes of Netflix and Hulu.

Amazon said that the members of its $79 "Prime" service would be allowed to stream movies as well as TV shows for no extra cost. To begin with, subscribers of Amazon’s Prime service will be able to access around 5,000 titles.

By contrast, video-streaming service Netflix offers as many as 20,000 titles for $7.99 per month, or $95.88 per year.

Like Netflix’, Amazon’s video-streaming service can be accessed on PCs and other devices such as internet-connected TV sets, sets connected to Blu-ray players and set-top boxes such as the Roku.

The prime benefit of the Amazon’s video-streaming service is that it is free with Prime.

Shares in Netflix slipped nearly 6 per cent in the after-hours trading.