Amazon.com launches digital download service

LOS ANGELES - Amazon.com has unveiled a widely anticipated internet service offering movies and television shows that can be downloaded onto consumers' personal computers.

The service, called Amazon Unbox, will offer content from six major Hollywood studios, including 20th Century Fox and Warner Bros, as well as US TV networks such as CBS and Fox, and cable channels like Comedy Central and E! Entertainment, the company said in a statement.

It is unclear whether customers outside the US will be able to use the service.

Speculation over an upcoming download service from Amazon had been rife for months, with Wall St considering such a prospect a positive due to the higher profit margins in digital downloads.

Amazon, the No 2 e-commerce site behind eBay Inc, has seen slowing sales and fewer new product categories into which it can expand.

Spending in research and development at Amazon has surged over the past year and many Wall Street analysts have speculated that a forthcoming download service was the cause.

Amazon customers will be able to buy the film and television show downloads on one computer but download them to another, such as a home computer. The service does not allow consumers to copy the content to a CD.

Amazon said that movies will be priced between US$7.99 ($12.53) and US$14.99 ($23.51) with television shows at US$1.99 ($3.12) per episode. Movies will also be rented for US$3.99 ($6.25).

Amazon, which will also offer films from independent studios such as Lions Gate Entertainment Corp and Fox Searchlight, said that content will be available to consumers as soon as the day after a television episode airs.

Popular films available on the service include Chinatown and Walk the Line, with television shows including CSI, Star Trek, and Buffy the Vampire Slayer.

Warner Bros. is part of Time Warner Inc, and Fox is owned by News Corp Inc.

- REUTERS