Amazon is in talks with movie studios such as Universal and Warner to launch a movie and TV show download service, enabling users to download content for a modest fee, and then burn it onto ordinary DVDs.
At stake is a major breakthrough if Amazon can cut a deal that allows consumers to download movie and TV shows for a modest fee, then burn that content onto ordinary DVDs.
"If Amazon can get to that fast track, it would eliminate the need for people to go out to rent or buy movies," says Piper Jaffray analyst Gene Munster. "If it doesn't, this service could be dead on arrival."
Currently, there is no easy way for consumers to burn downloaded movies to DVD. Yet more than 45 million U.S. households subscribe to a high-speed Internet service, and most home PCs are equipped with DVD burners, according to Pali Research.