Streaming video services
provider Netflix, Inc.(NASDAQ:NFLX) had better start getting worried. On
Tuesday internet retailer Amazon.com, Inc.(NASDAQ:AMZN) announced a licensing
deal with Epix to provide a whole library of movies and music.
Amazon is providing the
service through its Prime Instant Video Service that was set up for this
special purpose. The current deal will double the online retailer’s movie
library and give users of its Kindle e-reader and Kindle Fire tablet more
entertainment options. It may be recalled, that Amazon plans to launch an
upgraded version of its Kindle Fire, after announcing that the previous version
had sold out.
Netflix, of course, had the
first mover advantage and so long as the company kept its services at $8 a month
the company maintained its popularity. However, in between, it raised the
prices of its DVD rentals and video streaming services creating an uproar from
loyal users.
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Apart from the ricing debacle
the company made some other changes that have had an adverse impact on its
share price. That, combined with some other decisions the company made, sent
the share price plummeting. There also have been complaints from users about
its movie library and the ratio of quality, name brand movies to
B-movies is less than stellar.
This new deal between with Epix
gives Amazon gives access to blockbuster hits such as “Hunger Games”,
“Avengers”, “Iron Man 2”, and others.
Epix is owned by Lions Gate Entertainment, Viacom's Paramount Pictures and MGM, which in turn own
a wide variety of popular movies.
"We are investing
hundreds of millions of dollars to expand the Prime Instant Video library for
our customers," Amazon’s Bill Carr
told the Wall Street Journal. "We have now more than doubled the
selection of movies and TV episodes to over 25,000 titles in just under a
year."
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