Amazon building a movie store:

Filed under: — By Aviran Mordo @ 3:12 pm

Amazon.com Inc. is reported to be developing an online movie service which would launch in April and offer full-length films from at least two major studios.

The success of Apple Computer’s (AAPL) video iPod was instrumental in encouraging Amazon (AMZN) to develop its plan, according to Variety.

A supplier told the trade publication, Amazon might stream a movie to a customer and credit the purchase against the price of a DVD. Another option might be for a customer who buys a DVD to stream the content over his computer while waiting for delivery. The company does not want to cannibalize DVD sales, Variety reported. A Hollywood executive was quoted saying, “Everything is being leveraged to sell more DVDs. When you go to a product page it will say all the variations about how you’d purchase that video - stream, buy or maybe a combination (of options).”

Source: investors.com


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