Amazon takes aim at Netflix

Article Excerpt

AMAZON.COM $262.96 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206- 266-1000; www.amazon.com; Shares outstanding: 455.2 million; Market cap: $122.4 billion; No dividends paid) plans to start selling original TV shows through its website. Traditionally, TV producers make pilot episodes of new shows. If broadcast or cable networks like a pilot, they order a series of about 13 episodes. Amazon recently began streaming pilots for 14 new shows on its website, which viewers can watch for free. If enough people like a show, the company will produce more episodes and sell them through Amazon Prime, its $79-a-year rewards program, which offers free two-day shipping and access to other online content. This looks like a low-risk way for Amazon to attract new customers, as it will only fund shows that people want to buy. The new shows will also help it compete with Netflix Inc. (symbol NFLX on Nasdaq), which is also adding original content to its Internetstreaming service with popular series…