Amazon (NASDAQ:AMZN) recently announced content-licensing deals with CBS Corp. (NYSE:CBS) and NBCUniversal (NASDAQ:CMCSA) that will increase its Amazon Instant Video library of digital movies to 100,000 titles, up from 90,000.
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Amazon Instant Video competes with services like Apple’s (NASDAQ:AAPL) iTunes, which charge one-time fees for individual content rather than relying upon subscriptions as does Netflix (NASDAQ:NFLX). Amazon Prime is its answer to Netflix, but only has around 9,000 titles available to its subscribers, about half of what Netflix offers in digital content and only a fraction of Netflix’s total offerings when accounting for its DVD library.
With the new additions to Amazon Instant Video, it looks like Amazon has its eyes on Apple (NASDAQ:AAPL). Amazon plans to launch its own tablet to compete with the iPad before October, with a production target of 1.5 million units in the third quarter, and a total of 4.5 million to 5 million for the year. Amazon is likely to incorporate its two video services into the new tablet, creating competition for iTunes as well.
Amazon’s (NASDAQ:AMZN) Android-powered tablet could seriously undercut the iPad on pricing. Analysts say Amazon could profitably sell the new tablet for $249, less than half of the $499 price tag on the cheapest iPad model. If the tablet incorporates similar applications to those that have made the iPad so popular, it could attract a lot of sales from those put off by the iPad’s relatively high price.