Print 16 comment(s) - last by fishman.. on Oct 10 at 4:43 PM

Epix will provide Amazon with about 3,000 more movies to the Prime Instant Video catalogue

Amazon is shelling out a considerable amount of cash to make sure its Prime Instant Video Service continues to stay competitive with Netflix via a new contract with Epix.  
Amazon is shaking up the pricing model for licensing agreements with movie/TV studios. It recently agreed to pay Epix -- a partnership between Metro-Goldwyn-Mayer, Lionsgate and Paramount Pictures -- an earn-out provision if the number of Amazon Prime Instant Video subscribers increases above a certain point. This payment will be dished out over time as subscribers grow, and is in addition to the usual fixed upfront fee.  
Generally, services like Netflix only agree to a fixed upfront fee with movie/TV studios when it comes to content licensing. However, studios realized that they want to be in on any future growth that may occur with video streaming services. 
Epix isn't the only one who will benefit from such a deal model. Amazon has now given studios a reason to want to do business with them instead of bigger services like Netflix. As of now, Netflix has about 25 million subscribers in the United States while Amazon Prime Instant Video has about 3-4 million. Also, Amazon Prime Instant Video only has about 25,000 titles to offer while Netflix has double that. In other words: Amazon could really use the boost.
Epix will provide Amazon with about 3,000 more movies to the Prime Instant Video catalogue. Epix previously had a contract with Netflix for $200 million a year, but once that agreement ended, Amazon snuck in with the new deal.
Amazon really needs deals such as the one with Epix in order to boost its profit margins where the Kindle Fire is concerned, too. Amazon is selling the Fire at a discount with hopes that customers will use it to consume books, TV, movies and shopping through the e-tailer's services -- which makes up for the loss on selling the device at $199. 
Since 2011, Amazon has announced new streaming deals with companies like NBCUniversal and ABC.
Amazon and Epix announced their agreement last month, but the pricing model details were just recently released.

Source: Reuters

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Is the Fire really at a discount.
By halbhh2 on 10/9/2012 11:40:15 PM , Rating: 2
Back when the Kindle Fire launched, I read that Amazon was selling it at less than cost.

But the next day, actually the next day(!), in a local grocery store, I saw a cardboard display selling 7" tablets (very similar to the Fire) for....$120.

Now, 7" tablets sell for $80.

Is the Fire at a discount? Does the screen really cost an extra $120??

I doubt it.

By piroroadkill on 10/10/2012 8:30:15 AM , Rating: 2
The ultra cheap Android tablet market is one you have to be careful with. very easy to end up with a barely usable POS. There are bargains to be had, but research is needed. but for 80 dollars? no way will that be any good

RE: Is the Fire really at a discount.
By Rukkian on 10/10/2012 10:29:08 AM , Rating: 2
Nothing even close to being comparable was available when the fire first came out. Still to this day the only thing really comparable (favorably at that) is the N7 from Google. Everything else in that price range is either very outdated, or cheap crap with an old OS. Be very careful with the cheapo tablets. You definately get what you pay for.

By fishman on 10/10/2012 4:43:17 PM , Rating: 2
Many of the cheap tablets now run Android ICS. But they may only have 512MB of memory, 4GB of storage, weak batteries, etc. But component prices are still dropping, and decent sub $100 7" tablets are not that far off.

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