Amazon.com Inc. (AMZN) recently announced its decision to produce six more original TV series. Additionally, Alpha House, a political comedy about four senators who live together in a rented house in Washington DC, will return for its second season.
These shows include — The After (from a creator of X-Files), Bosch (by Michael Connelly), Gortimer Gibbon’s Life on Normal Street, Mozart in the Jungle (Jason Schwartzman and Roman Coppola), Transparent (from Jill Soloway, co-executive producer of Six Feet Under) and Wishenpoof!.
Management stated that viewers can watch these series for free on Amazon Instant Video streaming service.
Amazon Instant Video is a digital video streaming and download service that lets users rent, buy or subscribe to a range of video content. These series will extend the archive of shows on Amazon's video streaming library, making it a significant force in the video streaming segment and increasing competition for Netflix Inc. (NFLX) and Apple Inc. (AAPL).
Amazon Studios plans to shoot all of its 2014 original series using 4K Ultra high definition (HD) — the latest and most advanced technology in HD video. It offers contents with horizontal resolution to the order of 4,000 pixels. The technology will significantly enhance the video with unprecedented picture clarity and sound quality.
Many technology companies, including Hulu and Netflix, are getting into content production in order to reduce their reliance on traditional media companies. Amazon is also one of several big streaming services working on original content and plans to release its shows by the end of this year or early 2015.
We believe these efforts will boost the company’s revenues as well as help it to gain market share.
Additionally, Amazon has been beefing up its Prime Instant Video service through major licensing agreements. The company inked exclusive streaming rights to the PBS hit drama, Downton Abbey, FX's Justified and the second season of the hit CBS series Under the Dome.
Though Amazon is one of the leading players in an extremely fast-growing market, significant competition from eBay (EBAY), Google and other online retailers remain a matter of concern. Additionally, Amazon’s continuing investments in fulfillment centers could hurt profitability, going forward.
Amazon, currently, has a Zacks Rank #4 (Sell).
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