Time Warner’s subsidiary AOL has signed a deal with e-commerce company Amazon.com for selling videos though its online Unbox download service.
Financial terms of the deal were not disclosed, but Amazon said it will share revenue with AOL for selling movies and TV shows online through Unbox.
AOL would be discontinuing its pay-for-download service, which was launched in October 2006. The Unbox video downloading service was launched by Amazon in September 2006.
This AOL deal is Amazon’s second win in recent months. In September, NBC Universal partnered with Amazon to sell episodes of its TV shows through Unbox, after failing to reach an agreement with Apple to offer them on iTunes.
According to Amazon, Unbox offers television shows, movies and other videos from more than 30 studios and networks. The cost of TV shows is approximately $1.99 per episode, and while movies cost about $7.99-$14.99.
In August 2007, search giant Google also stopped selling and renting movies and TV shows to concentrate on ad-supported video. Gabriel Stricker, a spokesman at Google said that the effort to sell and rent videos was an important test for Google Video, which is still in beta mode.
Similar to Amazon and AOL’s deal, Apple also sells movies and films online through distribution contracts with Walt Disney and Paramount. In June 2007, Apple was in talks with Hollywood’s largest movie studios to launch online film rental service to give competition to cable and satellite TV operators.
Source: ComputerWire daily updates