Amazon’s stock climbed 2.3% this morning after the company made the announcement it has signed a deal to stream Fox movies and TV shows like “24” and “Arrested Development” as a service for Amazon Prime members.
The deal with Twentieth Century Fox includes instant 11,000 videos it will offer its Prime customers. Amazon already offers about 5,000 movies and TV shows from its free on-demand video service to its members of the $79-a-year service, which started in February. After that, the company added close to 2,000 TV show episodes from CBS.
Like other video streaming service companies, Amazon is expanding its licensing deals to stream content as competition gets fierce. Netflix lost some of its customer based, totaling one million, by raising its price to subscribers and for separating its streaming and DVD-by-mail plans. Nevertheless, the company announced an exclusive deal with DreamWorks Animation with plans to stream their movies and televisions shows.
Blockbuster, on the other hand, starting October 1, will launch a service that bundles DVDs-by-mail and Internet video streaming for as little as $10 per month, the same price Netflix charged prior to raising its prices.
It will be interesting to see how video streaming companies pan out in the long run. Will they all succeed? Which service will be the best or worse?