Shares of Netflix, Inc.(NASDAQ:NFLX) slumped 7% to $55.74 as Internet retailer Amazon.com, Inc.(NASDAQ:AMZN) and movie services company Epix reached a pact that will allow Amazon to stream several recent blockbuster films through its Prime Instant video service for free, the company announced today.
Epix has a joint venture for movie licenses from Paramount Pictures, Metro-Goldwyn-Mayer Pictures and Lionsgate.
It had also earlier had an exclusive streaming agreement with Netflix, Inc. that had ended back in August. That means Amazon’s streaming library is even more competitive with industry-leader Netflix.
The current licensing agreement between the two companies will now allow Amazon to stream tons of big-ticket movies 90 days after they are released to retail stores. Some of the movies coming to Prime include , and many more.
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The Prime Instant Video library is a complimentary service that’s part of Amazon’s Prime membership, a $79-a-year “club” that gives customers free shipping on lots of items sold through the site.
Amazon did not disclose the terms of the deal, but the company is "investing hundreds of millions of dollars to expand the Prime Instant Video library," Bill Carr, vice president of video and music at Amazon, said in a statement.
The company is also scheduled to make an announcement Thursday regarding the next generation of Kindle devices. And since the location of the press event is set right bang next to Hollywood, many are speculating that there could be another big movie-related announcement up its sleeve.