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

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Sponsor

toggle

Most Commented

 
toggle

Popular News