An interesting development considering Amazon will not actually be looking to deal with it first-hand, instead resorting to work through the existing rental infrastructure of either NetFlix or Blockbuster. Whoever gets this business will certainly be the winner in an already heated battle. The loser will have some serious issues surviving (in my book) against what will certainly be a very dominant player. Amazon has yet to waste much time in the categories they’ve committed the resources against.
I’d love to see it be Netflix personally… followed by their acquisition.
Amazon.com Inc (AMZN.O: Quote, Profile, Research) has approached online DVD rental service companies, including Blockbuster Inc (BBI.N: Quote, Profile, Research) and Netflix Inc. (NFLX.O: Quote, Profile, Research) , to explore a partnership rather than launching its own U.S. DVD rental service, an industry source said on Thursday.
The negotiations, which began in recent months, come as Blockbuster and Netflix are battling for dominance in the young industry, depressing profit margins and pushing up marketing expenses.
Amazon, Netflix, Blockbuster and Wal-Mart Stores Inc.’s (WMT.N: Quote, Profile, Research) Walmart.com, which also runs an online DVD rental service, declined to comment. [Reuters.com]