“Amazon.com is in talks with three Hollywood studios about starting a service that would allow consumers to download movies and TV shows for a fee and burn them onto DVD’s, according to three people briefed on the discussions,” Richard Siklos reports for The New York Times. “If the advanced negotiations are successfully concluded, Amazon’s service would position itself in the media world alongside rivals like Apple Computer’s iTunes as a place where people go not just to order goods to be sent by mail, but to instantly enjoy digital wares as well.”
“So far, Paramount Pictures, Universal Studios and Warner Brothers are engaged in the talks, said one person close to the talks who, like the others, asked not to be identified because the negotiations are continuing,” Siklos reports. “Depending on the pricing of downloaded movies and the agreed split between the studios and Amazon, electronically selling DVD’s to consumers could represent a way to increase profit margins, as the overall growth of DVD’s has cooled. But the studios also face a delicate balancing act in ensuring that physical retailers like Wal-Mart, which account for the bulk of their existing sales, do not feel left in the lurch by the new digital endeavors.”
Full article here.
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