http://www.nytimes.com/2008/07/17/technology/17amazon.html?_r=1&ref=technology&oref=slogin
Amazon is now looking for a new way to enter consumers’ homes. With the goal of making other Amazon products more prevalent, they are seeking to launch a new product of Amazon Video on Demand. Different from their past products, Amazon Video on Demand allows users to ‘store’ purchased videos in a folder hosted on Amazon’s servers. By doing so, these movies can be viewed from different computers, and also, helps eliminate worries of piracy.
Amazon Video on Demand is also teaming up with Sony Bravia to have a pre-programmed channel to access these videos on televisions, rather than solely on computers. Amazon is also working to develop partnerships with other television producers that come pre-equipped with this technology.
Although Amazon Video on Demand is not expected to generate high profits for the company, this product seems like a great expansion to their line of technology. Their sole intention is to make consumers more aware of Amazon by brining it closer to everyone.
With rising costs of gas, movie tickets, and everything else in the economy, Americans are now turning to more cost-saving options. I, for one, rarely go to movie theaters anymore. Why not wait until it is available in my own home? I can then watch it as many times as I like and with as many people as I wish.
For example, Time Warner Cable launched Movies on Demand in 2002 for its digital cable subscribers. This became a strategic move in a couple of ways. First, it encouraged viewers to upgrade their traditional cable to digital cable, a move that costs consumers $10 more per month. Second, it also opened a new revenue generating path by offering new products and services to its consumers.
As Time Warner Cable’s Movies on Demand took off, I find it a smart move for Amazon to jump into the game. By partnering with the makers of televisions, it becomes a standard feature on certain brands. For regions not offered products such as Movies on Demand by their cable providers, Amazon becomes the ‘monopoly’ of these lines.
Reference: http://query.nytimes.com/gst/fullpage.html?res=9A01EEDC163DF935A25753C1A9649C8B63
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