It was supposed to launch last month, but didn’t. Now Variety reports it could come this week, which means within the next day or two. Apple’s iTunes movie downloads is expected to be announced Tuesday, so it might have been a strategic delay on Amazon.com’s part. Why? Because in comparison to the deal Apple has (with only two studios for now: Disney and indie powerhouse Lionsgate), Amazon.com has deals with most, and possibly all, of the major studios on board, including Paramount, Sony, Universal, Warner Bros., MGM and Lionsgate.
Because it also sells DVDs, Amazon has agreed to studio demands that digital wholesale prices not undercut those of DVDs. As a result, Amazon.com’s digital download prices are expected to range from $9.99 to $19.99 — about the same as those for other online retailers such as CinemaNow, Movielink and AOL.
For all the chatter around Amazon.com’s movie service, read our dedicated company page here.