Picture perfect?
Amazon is believed to be working on a film streaming service to go head-to-head with Netflix, just weeks after acquiring LOVEFiLM.
Amazon plans to bundle access to the film streaming service with Amazon Prime- it's current premium service that gives customers unlimited free shipping for an initial fee, The FT reported.
Apparently Engadget recently spotted a page on Amazon that reportedly said: "Your Amazon Prime membership now includes unlimited, commercial-free, instant streaming of 5,000 movies and TV shows at no additional cost." But it was swiftly taken down.
A source reportedly confirmed to The FT that Amazon has been working on a streaming service, which is perhaps unsurprising given that Amazon has recently bought LOVEFilM for £200m.
While Amazon already offers films to buy and rent digitally, it seems intent on stealing some market share from Netflix and getting in on the film streaming subscription action.
Arash Amel, research director for digital media at media consultancy IHS Screen Digest, told the newspaper: "Amazon is switching focus away from the rental business in favour of the subscription model which connects far better with its core, online retailing profit centre. This is about keeping consumers in the Amazon environment while providing extra value ... providing subscription video is a far better way to do that than by selling digital downloads [of films]."
However, it will not be easy for Amazon to muscle in on Netflix's territory and there were rumours that Amazon was mulling over buying the successful film service.
Netflix reportedly last year inked a $900m 5 year online streaming deal with Metro-Goldwyn-Mayer, Paramount Pictures and Lions Gate Entertainment, in a move that will give studios a boost as sales of DVDs fall.
