Netflix Could Face Competition with New Amazon Streaming Service
The battle over streaming content is about to heat up. The New York Times reported that Amazon.com (NASDAQ: AMZN) announced an exclusive deal with A24, a film distribution, financing and production company. The deal marks the first exclusive agreement for the company.
A24 has achieved success in a relatively short time with hits such as Spring Breakers, The Bling Ring and upcoming highly-anticipated features like Scarlett Johansson's The Skin.
Amazon Prime's Instant Video service is a direct competitor of Netflix (NASDAQ: NFLX) and charges a one-time annual fee of $79 compared to Netflix's $7.99 monthly fees. Amazon is attempting to play catch up with the much larger Netflix. The company has spent hundreds of millions of dollars with the hopes of becoming the exclusive premium streaming home.
“This new deal with A24 allows us to offer those same titles to our Prime Instant Video customers soon after they are released on DVD and Blu-Ray and at no additional cost,” said Brad Beale, Director of Digital Video Content Acquisition for Amazon.
A24 feels that the relationship between the companies can yield success.
“As an independent film distributor, our relationship with Amazon Prime Instant Video marks the next generation in output deals. It speaks to the larger shift in customers' consumption habits,” according to Matthew Bires from A24.
Netflix has similar agreements in place with Disney (NYSE: DIS) that are set to begin in 2015. In addition to receiving exclusive rights to Disney and Marvel films, Marvel will create original content based on the Avenger's franchise that will be exclusive to Netflix.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.