Did Amazon and Netflix just declare war?

This morning the online everything-seller, Amazon.com, announced unlimited, commercial-free, instant streaming of 5,000 movies and TV shows to its Amazon Prime members, effective today.

Break down the $79 annual Amazon Prime fee, and it’s approximately $6.58 a month for unlimited viewing (not to mention Prime membership’s other benefits, including free two-day shipping on purchases from the site). TV shows include many BBC (“Doctor Who,” “Top Gear”) and PBS (“Masterpiece,” “NOVA”) series; “The Girl with the Dragon Tattoo” and “One Flew Over the Cuckoo’s Nest” are examples of available films. Netflix.com charges $7.99 a month for similar services.

But, not to be outdone, Netflix made an announcement of their own today: The site just unveiled a two-year, non-exclusive licensing agreement with CBS Corp., meaning CBS shows such as “Medium,” as well as classics “Twin Peaks” and “The Twilight Zone,” will be available to Netflix subscribers. The CBS library will appear on the site in April.