Seeking a less crowded and dominated market to exploit, Amazon is reported to be launching an iTunes-esque video download service in mid-August.
AdAge appears to have gotten the scoop from TV-network executives involved in dealings with the e-commerce giant. Called Amazon Digital Video, the service will allow subscribers to download movies and TV shows a la carte.
Unlike the music download market, which is controlled by Apple and recently invaded by Microsoft, the video download market is still wide open for a blockbuster business model and technology.
Reportedly, Amazon has been working on such a model and technology for the past year and has cut deals with just about every major network but ABC. The article quotes an ABC executive to reveal the network is "not close any type of deal" with Amazon.
Amazon already operates Netflix-type DVD rental service in Europe. If Amazon is looking to launch a download-to-own video model, it will need to hurry to stay ahead of the fierce competition that discouraged it from entering the online music scene with full force. Both Apple and Netflix are also said to be looking into the video download market.
Reuters reports that Amazon would not comment on speculation or rumor.
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