Amazon to begin digital distribution of movies

Written by Brett Thomas

July 25, 2006 | 16:14

Tags: #digital #distribution #download #drm #films #itunes #movies #video

Companies: #amazon #apple

It seems everyone wants a little bit of Apple's pie, as we've had a few rumours for where the next major download spot would be for feature films and video. Now, we can add another hat into the ring, as it appears Amazon is looking to offer a download service as well.

The rumour, started by our favorite employee (Mr. Knowledgeable Source), is that Amazon has already struck deals with many Hollywood studios to release the digital videos. This wouldn't be the first time that Amazon has been tossing around digital downloads, as they were intending to do that with music as well. However, Apple did such a good job cornering the market with iTunes that Amazon decided to not waste the resources.

Though Apple also has a head start in video (with 35 million paid downloads since it started the service a little over a year ago), the market is much more open. As Amazon is a nearly household name synonymous with books and movies, Jeff Basos and company hope to gain a bit more ground with this offering. The plan is supposedly going to encompass a monthly flat-rate "all you can watch," a pay-per-view, and a pay-per-movie pricing scheme.

Amazon has refused to comment on the matter, stating that it does not comment on "speculation or rumour." Of course, that hasn't stopped shareholders and analysts from reacting positively to the news.

Yet again, we are left without information regarding DRM or format limitations. However, it is always nice to see another big player stepping into digital downloading.

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