Amazon Looking into Taking on Netflix

(The New York Post) - Jeff Bezos and his team at Amazon are weighing a move to beef up the retailer's video-streaming service -- possibly carving it out as a standalone, subscription-based operation, industry sources said.

Such a move, if undertaken, would set the retail behemoth in the same competitive orbit as Netflix.

Currently, Amazon's Instant Video comes free with Amazon Prime, the $79 unlimited shipping service.

"They're looking into it being a standalone subscription service," one content executive said. A second executive noted they believe Amazon is chewing over a possible charge.

The internet retailer does have a paid video-on-demand movie and TV service, but the streaming service would be different.

"The big issue is their bundled media service," one digital media executive said. "The subscription service, with the goodies being free video, is contractually an issue for the licensers."

Tinseltown talent does not like being a loss-leader for Amazon shipments of everything from diapers to digital devices.

Word that Bezos may be looking to add muscle to its video service came nearly one year after Amazon launched Instant Video last February. In July, Amazon paid CBS around $100 million for 2,000 hours of TV shows. It then followed up with deals for FOX content, such as "Arrested Development," and with Disney and NBCUniversal.

The company has had little to say in recent months, however, though one source said that Amazon was "refreshing its checkbook."

Amazon has been paying fees that are based on the number of subscribers.

Amazon Prime has seven million to eight million subscribers, analysts estimated.

Netflix, which reports fourth-quarter results Wednesday, has 20 million streaming subs globally.

Paul Verna, senior analyst at eMarketer, said, "Amazon is aggressively pursuing the same content strategy as Netflix and is spending a lot upfront to try to secure exclusivity. They won't always get it, but they need to differentiate themselves."

Amazon did not return calls for comment.

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