Amazon announced today they have made an agreement with MGM to add hundreds of classic movies and TV shows for Amazon Prime's Instant Video library. This brings the total number of available videos to more than 18,000 movies and TV episodes all available to stream to your living room and beyond. Add to it that more devices are now able to run Amazon Prime's Instant Video streaming (e.g, Sony's PS3, Microsoft's XBOX, mobile devices, Blu-Ray players, and Smart TVs) making the case for Amazon Prime subscription more lucrative.

Streaming video is by no means a mysterious product, but Amazon's strategy is, and it has us wondering what Amazon's end game is.

Netflix and cable TV providers have trained consumers each incremental increase in available streaming options (or sometimes even negotiating existing services with providers) involves a change in price, usually at the cost to the consumer.

So how come Amazon's strategy is counter to the actions of its competition?  They've added ABC, Paramount, PBS, Viacom, FOX and countless other studios all for an annual price of $79 (or $39 for students), and not a single price increase since its introduction. Tied to Amazon Prime's streaming service you also receive free two-day shipping, access to Amazon Kindle reader content and discounted offers. How can it be, for only around $6.59 a month we can get all that Amazon offers?

What do you think?

  • Are Amazon's DVD and Blu-Ray disc sales showing consumer trends are shifting more drastically to a streaming service than previously reported? Are they hedging their bets?
  • Is Amazon tying up content deals to battle it out with the competition (e.g., Netflix, Apple iTunes, Hulu, YouTube, cable, video on demand, movie theaters, piracy) and out muscle weaker competitors?
  • Is this Amazon's attempt to sell more Kindle Fires?
  • Is Amazon Prime due for a price increase?
  • Or is Jeff Bezos just that nice, that he wants you to be able to watch episodes of Stargate where ever and whenever you please?
Whatever the reason, with multiple inexpensive streaming options and agreements like these that increase available content, consumers win.


Hundreds of Classic TV and Movie Titles from MGM Coming to Prime Instant Video

Prime Instant Video offers unforgettable films and TV episodes including Moonstruck, Rain Man, The Silence of the Lambs, Species, Stargate and many more

SEATTLE–(BUSINESS WIRE)–Jun. 13, 2012– (NASDAQ:AMZN) –, announced a licensing agreement with Metro-Goldwyn-Mayer Studios, Inc., adding hundreds of classic movies and hit TV episodes throughout 2012 to the Prime Instant Video catalog. Prime Instant Video now features more than 18,000 movies and TV episodes to instantly stream and enjoy at no additional cost. To start watching Prime Instant Video now, visit Customers who are not Prime members can enjoy a free one month trial of Prime.

"Our customers tell us they love having tons of movies and TV shows to choose from, which is why we are focused on adding even more titles to our already extensive Prime Instant Video library," said Brad Beale, director of digital video content acquisition for Amazon. "MGM offers one of the most distinguished catalogs in all of Hollywood, and this deal will bring Prime Instant Video customers hundreds of new titles to enjoy on their Kindle Fire or any device compatible with Amazon Instant Video. Customers can enjoy favorites like The Silence of the Lambs, Dances with Wolves, Rain Man and The Terminator, as well as fan-favorite TV series like Stargate."

Prime customers can access Prime Instant Video on Kindle Fire or any of the hundreds of compatible Amazon Instant Video devices, including the Xbox 360 and PlayStation 3 gaming console. For a list of compatible Amazon Instant Video devices visit here. [press_end]