Printed from http://www.electronista.com

Amazon rumored splitting off video service to fight Netflix

updated 12:10 pm EST, Wed January 25, 2012

Amazon Instant Video may go separate

Amazon might separate at least the subscription side of its Instant Video service to better compete in Internet video. A rumor late Tuesday from the New York Post had it breaking the subscription video out from its bundling with the $79 Prime service. Studios are reportedly unhappy that Amazon was following its traditional practice of using a service as a loss leader, presumably for setting unrealistic price expectations or treating movies and TV shows as afterthoughts.

The flat-rate video might be treated differently than the pay-per-title sales and rentals that Amazon first set up when it was competing more directly with iTunes. It's not clear whether this side of the service would join the subscriptions in the more distinct service, although it wouldn't necessarily have to make the leap.

Amazon isn't known to have a tentative price in mind. Officially, it hasn't commented on the rumor.

A split would be ostensibly meant to compete against Netflix and make sure that Amazon keeps getting major content, such as that from its deal with Fox. It could also help compete with iTunes and other stores that don't offer subscriptions but can claim more of a content advantage over Amazon Prime. Separate service may hurt the Kindle Fire tablet, however, since customers might either be denied a cheap way to get video content or be forced to choose between that and subscriptions for e-books and sped-up shipping.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Patriot Supersonic Rage XT 128GB USB drive

USB thumb drives are getting larger by the day, their growth speeding along with the availability and expansion of memory chips. But h ...

Crucial MX100 256GB SATA-3 SSD

While the price-per-gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for ...

Narrative Clip

With the advent of social media technology, people have been searching for new ways to share the events of their daily lives -- be it ...

Sponsor

toggle

Most Commented

 
toggle

Popular News