) has recently extended its Instant Video streaming service to
Japan. Through this digital video streaming and download service
users can rent, buy or subscribe to a range of video content.
Amazon'sJapan Instant Video service will feature 26,000 movies
and TV episodes. The customers will be able to watch older films
Good Will Hunting
' and Michael Jackson's '
This Is It
' at a rental charge of 100 yen (roughly 98 cents) for 24 hours,
with prices increasing with newer hits.
The launch comes on the heels of the introduction of Kindle
Fire HDX in Japan. Equipped with a quad-core 2.2 GHz processor
and stereo speakers with Dolby Digital Plus-Audio, Kindle Fire
HDX boasts 11 hours battery time. The device will come with a
2,000 yen ($20) coupon as part of a promotional offer.
While selling and lending books on the Kindle platform is on
the rise, Amazon is signing content deals to upgrade and promote
movies and television shows on its video streaming service.
Initially, Amazon's Japan Instant Video service has secured
content partnerships with Shochiku, Toho, TV Asahi and Warner
Bros, among others.
Amazon's reach and value proposition are making it a key
player in the video distribution business, providing competition
to the likes of
). The recent expansion of its video streaming service in Japan
will expose Amazon to direct competition from local players such
), which already have a strong presence in the Japanese market.
However, Netflix still has no presence in the country.
However, the company's digital music and video businesses have
not had the same success as its e-book market. According to the
NPD Group, Amazon and Xbox Video have less than 10% market share,
while Apple's iTunes store is the clear leader in digital music
with a share of 67% in 2012.
Hence, Amazon is exploring ways to improve its digital
business by making music and video available in other countries
Amazon is one of the leading players in an extremely
fast-growing market. In the last reported third-quarter, Amazon's
revenues of $17.09 billion were up sequentially as well as from
the year-ago quarter. Management attributed the revenue increase
to the growing consumption of digital content across different
categories owing to the advantageous value proposition Amazon
provides to its customers.
Amazon's shares currently retain a Zacks Rank #3 (Hold).
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