Amazon to challenge Netflix with video service

08 Feb 2012 | Rasmus Larsen |

Amazon wants to challenge Netflix with a new video streaming service and is reportedly close to striking a deal with Viacom for content, according to Reuters. The new streaming service will expand beyond the current Amazon Prime and will be available to users in select countries.

Update: Amazon has just announced the Viacom deal for Prime customers - but still no subscription service.

Amazon video service

Amazon currently offers a video service to Amazon Prime customers but Amazon is now planning to release an open video streaming service for users in select countries. According to Reuters the service could be announced as soon as this week.

Amazon Kindle Fire
Amazon wants to offer a new video subscription service and drive more users their Kindle Fire eco system

Amazon already has agreements with studios such as CBS, Warner Bros, Fox, Sony, NBC, Universal and Walt Disney. The deal with Viacom (Paramount Studios, MTV, Nickelodeon & Spike) is reportedly only weeks or days away.

Amazon is currently offering digital videos for purchase and rental but with the new service, Amazon aims to create a monthly subscription video service, positioning them as a competitor to Netflix. Netflix currently has over 25 million subscribers and recently launched in the UK & Ireland.

- Source: Reuters

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