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Amazon.com enters licensing agreement with NBCUniversal

The deals gain significance as Amazon is going to launch its own tablet very soon. Presently, Amazon holds the top position in digital books and online book stores primarily due to its hugely successful Kindle e-reader.

Amazon.com announced on Thursday, the finalization of a new deal with NBCUniversal which will add around 2,000 movies from the Universal Pictures.

Amazon finalized a similar deal worth $100 million with CBS Corp. last week. The content will be available through Amazon Prima, for a membership fee of $79 per year.

New deal to add 1,000 new titles
Amazon announced that the company has agreed to add around 2,000 titles from Universal Pictures of the NBCUniversal.

Comcast owns the 51 percent of NBCUniversal while the rest 49 percent of NBC Universal is owned by GE.

The deal with NBCUniversal will now bring movies like ‘Babe,’ ‘Elizabeth,’ and ‘Billy Elliot’ along with older TV shows like 'The Tudors' and 'Medium.'

The deals gain significance as Amazon is going to launch its own tablet very soon. Presently, Amazon holds the top position in digital books and online book stores primarily due to its hugely successful Kindle e-reader.

Amazon reported 144 million users during the second quarter of this year but prime members accounted for only 10 percent out of these users.

Now Amazon is eyeing the wider digital content like videos, games and apps market before the launch of its own tablet computer. The tablet could give a boost to its sales as the Kindle e-reader did for the sales of books online.

With the latest deals, Amazon now has more than 9,000 to offer, announced the company.

Stiff competition
The competition is continuously increasing among the major players in the video streaming market.

While Netflix emerges ahead in the video rental business with more than 20,000 titles to offer and its 23 million subscribers make it a clear leader.

According to recent estimates by Barclay Capital, Netflix could increase its offering to more than 30,000 titles by the end of this year.

Amazon reported 144 million users during the second quarter of this year but prime members accounted for only 10 percent out of these users.

The other competitors in the video streaming business are Hulu and Apple, who are trying hard to capture a significant share of this rapidly growing business.

Amazon.com’s stocks gained 0.7 percent to close at $223.94 while the Netflix shares dipped 0.62 percent to touch $1.81.