) announced a content licensing agreement with
CBS Television Network
), extending the archive of television shows and films currently
available on its streaming video site, Amazon Prime Instant
Amazon Instant Video is a digital video streaming and download
service that lets users rent, buy or subscribe to a range of
The CBS deal will make Amazon's Prime Instant Video service
the exclusive online subscription service for streaming a new
drama "Under the Dome," based on Stephen King's acclaimed novel
of the same name. The new episodes will be available on Prime
Instant Video just four days after the series makes its debut on
TV in June.
The online retailer has been consistently upgrading and
promoting movies and television shows on its streaming video
service. Over the past 12 months, Amazon has entered into a
number of deals with every major Hollywood studio, as well as
some of the major cable networks.
Recently, Amazon signed a deal with PBS Distribution and TNT
for the exclusive web rights to famous series like "Downton
Abbey" and "Falling Skies," which took the number of videos it
offers to a total of 36,000.
We believe the deal is the latest effort by Amazon to
strengthen its position versus
), the leading online video subscription service in the United
States. Additionally, Amazon has plans to produce test episodes
of six comedies and five children's series this year, while
Netflix has four more original series coming up this year.
Amazon is spending a considerable amount on licensing deals
for movies and TV shows to attract more viewers to Prime Instant
Video. Though these deals are helping to build a library of
television shows and movies, it is still well behind rival
Netflix. Netflix's Internet video library is estimated to have
more than 75,000 titles, still far more than Amazon's
Amazon is one of the leading players in an extremely
fast-growing market. In the fourth quarter, Amazon's revenues of
$21.3 billion were up sequentially as well as from the year-ago
quarter. Management attributed the increase in revenues to the
growing consumption of digital content across different
categories owing to the advantageous value proposition Amazon was
able to provide to its customers.
Amazon shares currently retain a Zacks Rank #3 (Hold) while
Netflix carries a Zacks Rank #2 (Buy). Others stocks that are
currently doing well include
), both of which carry a Zacks Rank #2 (Buy).
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