Monday, July 24, 2006

Amazon to launch movie service

Advertising Age reports that because of Apple’s digital music dominance, Amazon chose to drop music and focus on video. “The service, which is referred to as Amazon Digital Video—or Amazon ‘DV’—has evolved over the past year from a music-themed offering to a video-centric one, according to production-studio and TV-network executives briefed on the plans. The reason? Apple already commands such a large share of digital-music sales that Amazon felt it would be too difficult to break into the market.” Amazon’s service will require users to install software to buy videos individually, “likely as part of a download-to-own model, or subscribe to them, like a digital version of Netflix’s rental model.”

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