Amazon already is a player in the online video market, but bigger things might lie ahead.
Its members of Amazon Prime – the $79 per year service – can stream such movies as "The Last of the Mohicans", "Caddyshack", and "The Pelican Brief" as well as TV shows like "Glee", "Sons of Anarchy" and "Lost." Amazon also rents movies, including new releases, and television shows for Web viewing.
Now, the company reportedly is mulling over whether to increase its stake in the online video market by launching a standalone, subscription-based streaming video service.
"They're looking into it ... " one content executive told The New York Post.
That decision would make Amazon a direct competitor to Netflix and other subscription-based "over-the-top" services including Dish Network's Blockbuster Movie Pass. Amazon didn't return calls placed by the Post for comment.
“The big issue is their bundled media service," one digital media executive said. “The subscription service, with the goodies being free video, is contractually an issue for the licensers."
Amazon already is spending money on movies and TV shows for its Amazon Prime members. That service could see significant growth thanks to the release of the Kindle Fire, Amazon's $199 tablet computer. Customers who buy the Kindle Fire receive a free trial of Amazon Prime. The service includes free two-day shipping on items, streaming of movies and TV shows and access to thousands of Kindle books.
