Amazon is set to announce a partnership with Viacom to improve its Amazon Prime Instant Video streaming service to compete directly with companies like Netflix.
Amazon already has a streaming online service in the UK thanks to its buyout of LoveFilm, however across the pond it doesn't have the same sort of presence, so increasing its available media with a Viacom deal makes sense. Along with the reduction of DVD rentals, streaming services have become exceedingly popular and if Amazon could take its already proven technology and apply it to Viacom's catalogue, it could make an impressive combination.
Viacom companies include the MTV networks, Nickelodeon, Paramount studios and have TV shows and movies as part of their collections. However if/when the deal is announced, Reuters reports that Amazon will also be bringing in properties from CBS Corp, Time Warner, Fox, Sony Corp and Comcast.
For now Amazon's Prime Instant Video service has mainly been an extra feature for Amazon Prime members, but with several million Kindle Fire devices now sold, the online retail giant is keen to expand its streaming service to a much larger customer base. With a Viacom partnership, Amazon would have a great starting point to draw in a bigger audience.
So far Viacom has said that it will be announcing a big video partnership, but declined to comment on which company it would be with.