Amazon Pens 4K Ultra HD Content Deals - Analyst Blog

A A A Inc. 's ( AMZN ) streaming video site, Amazon Instant Video, announced that it has teamed up with Samsung Electronics Co. Ltd. and major Hollywood studios and TV programmers, including Warner Bros., Lionsgate, 20th Century Fox, Discovery and others, to provide its customers with a library of 4K Ultra HD choices.

This news comes following the announcement that Amazon's film and TV production division, Amazon Studios, plans to shoot all of its 2014 original series, both comedies and dramas, using 4K Ultra HD.

4K Ultra HD is the latest and most advanced technology in HD video. It offers contents with horizontal resolution to the order of 4,000 pixels. The use of horizontal resolution technology is a qualitative shift from the vertical resolution offered by older HDTV technology. The technology will significantly enhance the video with unprecedented picture clarity and sound quality as they have four times as many pixels on screen as HD TVs.

The deal defines Amazon's commitment to provide customers with extensive content in 4K Ultra HD space, giving them the best viewing experiences at home. It could be said that Amazon's deals with Hollywood studios will likely make it a leader in 4K Ultra HD and fulfill the desire of consumers who own 4K TV hardware but do not have much of content to watch.

Amazon continues to see attractive growth rates, which is commendable given its size and market position. This has only been possible because of its extensive investments in areas of growth including streaming content, tablets and cloud computing. We believe Amazon's continued investment in new technologies such as 4K, will help it to be a leader in these market segments.

Amazon is one of the major players in an extremely fast-growing market and has shown strong revenue growth in the last reported quarter. The company posted revenues of $17.09 billion, up 8.8% sequentially and 23.8% from the year-ago quarter. Its leadership in the 4K Ultra HD market will likely translate into higher revenues due to the increasing consumer adoption for the new HD format.

Currently, Amazon's shares sport a Zacks Rank #1 (Strong Buy). Other stocks that are performing well include Autobytel Inc. ( ABTL ) , Netflix Inc. ( NFLX ) and Geeknet Inc ( GKNT ). Both these stocks carry a Zacks Rank #1.

AUTOBYTEL INC (ABTL): Free Stock Analysis Report

AMAZON.COM INC (AMZN): Free Stock Analysis Report

GEEKNET INC (GKNT): Free Stock Analysis Report

NETFLIX INC (NFLX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ABTL , AMZN , GKNT , NFLX

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