Amazon looking for partner for US online DVD rental market

Is there any way to get the US DVD rental market margins any slimmer? Amazon is wanting to find out. Unable to wedge into the already cutthroat online DVD rental market on it's own, the online giant is sniffing around town for someone to buddy up with. According to Reuters, Amazon has already approached Blockbuster and Netflix Inc.

The negotiations, which began in recent months, come as Blockbuster and Netflix are battling for dominance in the young industry, depressing profit margins and pushing up marketing expenses.

Amazon, Netflix, Blockbuster and Wal-Mart Stores Inc.'s  Walmart.com, which also runs an online DVD rental service, declined to comment.

Despite its online might, shopping giant Amazon faces a potentially expensive battle to crack the competitive U.S. online rental market. The company started its own DVD rental service in Britain in December.

Well, you can read the rest of the story from Reuters here, along with current tallies of customers for each company. Oddly, it was the rumor that Amazon would enter the U.S. online DVD rental market last year that started the "crazy eddie" price war between Blockbuster and Netflix, as they each knew they would have to grab market share to survive.

Source: Reuters

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