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You should still pick Netflix over Amazon Video, even though it's more expensive

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Amazon's original series "The Man in the High Castle." Amazon

Amazon made a surprise announcement Sunday by undercutting Netflix with a new standalone video streaming service that costs $8.99 per month.

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The timing may be perfect for Amazon to swoop in and undercut its rival, weeks before many Netflix subscribers are about to see their subscription fee increase. But the reality is that even at $9.99 per month, Netflix is one heck of deal and a much better option than Amazon.

While both Amazon and Netflix have a lot of overlap when it comes to third-party movies and TV shows, Netflix stands out because it has a much better catalog of original programming than Amazon does. Amazon has a few sleeper hits like "Transparent," but its originals have largely failed to get the same kind of buzz and critical acclaim as Netflix's growing library of excellent shows.

In fact, Netflix's content is so good, that a recent Morgan Stanley survey found that viewers prefer watching Netflix's original shows over those from HBO and Amazon.

morgan stanley netflix survey
Business Insider

So, if you have to decide between Netflix and Amazon, I recommend spending the extra buck each month for Netflix. It's worth every penny.

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But if you shop on Amazon a lot, you should definitely take a look at Amazon Prime, which costs $99 per year and gives you free access to Amazon Video on top of free two-day shipping for just about anything you want to buy, plus a host of other perks. That way you get the best of both worlds.

Disclosure: Mathias Döpfner, CEO of Business Insider's parent company, Axel Springer, is a Netflix board member.

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