Amazon inks contract with NBC for expanded video service

Amazon’s received a boost in its share price on Friday after releasing a renewed contract with Comcast’s NBCUniversal. The deal is to expand its video offerings in the Prime Instant Video service.

The share price increased almost 2 percent to nearly $246; a tad lower than last year’s all-time high of $246.71. That share price was the result of Amazon’s release of Kindle Fire, the colourful $199 tablet that competed with iPad on many fronts.

The stock received a hit in July when Google launched its own tablet, Nexus 7 that was also priced at $199. However, it recovered quickly.

The share price on Friday went up as much as $246.87, temporarily breaking October 2011 record but it remained intact at the day’s end.

The NBC deal will offer expanded services with a wider range of shows like “Parks and Recreation,” “Parenthood” and “Heroes” in the archives. The deal comes as a part of the series of contracts with major television networks to expand the Prime Instant Video service in its renowned eco system.

The launch of Nexus 7 has been the biggest threat to Kindle Fire because of its price. However, the ace up in Amazon’s sleeve is its eco system that offers a wide variety of content from videos to audios to books. The biggest retailers surely want to keep the crown to themselves.

Prior to the NBC contract, Amazon hatched a deal with Warner Bros. for expanded services with shows like “The West Wing,” “Fringe” and “Alcatraz.” This addition is already in action, whereas, the NBC deal is expected to kick-in shortly.

In other news, Amazon is expected to release the new version of Kindle Fire at an event scheduled on September 6. The company has already sent out invites to the event. The new version is also expected to be a major upgrade to last year’s model with a better display and a competitive price.

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Posted by Usman Khalid on Aug 25 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.