Amazon.com, Inc.(NASDAQ:AMZN) has joined hands with Hollywood studio partnership Epix, thereby adding over 3000 movies to the formers’ video streaming library. This maneuver will no doubt give Amazon an edge over rivals Netflix, Inc.(NASDAQ:NFLX) and Apple. Till a week ago, Amazon had stated that its Prime Instant Video service had more than 22,000 titles to stream, but the Epix deal increased the figure to over 25000.
Amazon Prime Instant Video subscribers will be
able to see movies from Epix studio partners like Viacom Inc's Paramount
Pictures, Metro-Goldwyn-Mayer Pictures, and Lions Gate Entertainment Corp, such
as "The Avengers," "Iron Man 2" and "The Hunger
Games". Amazon’s timing of clinching the deal couldn’t be better as it is
planning to release an upgraded version of its Kindle Fire Tablet. Now, users
will be able to access more movies than ever, thanks to the agreement with
Epix!
Ever since 2010, Netflix had been shelling out
$200 million a year as for gaining exclusive rights to movies from Epix. The
agreement will expire this month, although Epix movies will be played till the
end of September. Netflix shares plummeted by 6.35% to $55.93 on Tuesday.
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Netflix CEO Reed Hastings has stated in July that
Netflix would not be affected too much even if Epix movies are being run on
rival services. This is because Epix contributes to a very small portion of
total viewing at 5%, according to Netflix spokesman Joris Evers. The major
segment of viewing is dominated by shows like "Mad Men" and
"Breaking Bad”.
Tony Wible, an analyst at Janney Capital Markets,
attributed the weakening of Netflix shares to the fact that it eliminates the
possibility of Amazon acquiring Netflix in the near future. Content from Epix
comes with a hefty price, and Amazon will not shell out twice to obtain same
content. Apple, which competes with Kindle Fire when it comes to iPad, had
indulged in talks with Epix to extend its product offerings into a TV set, but
as of now there is no news from that end.
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