Amazon adds Universal movies to streaming service

Amazon.com, which now offers a free instant streaming video service to its Amazon Prime members, has just reached a deal that will add movies from Universal Pictures.

The move—which follows the decision by competitor Netflix to separate its streaming service from its DVD rental business boosting prices for members who get both—comes just a week after Amazon inked a deal with CBS for the right to stream more than 8,000 movies and TV shows.

The deal with NBC Universal gives Amazon non-exclusive access to a portion of Universal's film library, including movies such as Eternal Sunshine of the Spotless Mind and Billy Elliot. It's believed that the deal with Universal will add about 1,000 movies to the Amazon Instant Video library.

Amazon and other competitors, such as Hulu Plus, are looking to beef up the amount of content they can offer subscribers in an effort to challenge Netflix, the clear leader in the streaming video market. But Netflix told analysts it anticipates losing some customers as a result of its recent subscription change, which charges separate $8-per-month fees each for streaming and by-mail DVD rentals. Previously, DVD renters got streaming for free, but they'll have to pay 60 percent more to receive both services starting in September.

Amazon currently offers free streaming to Amazon Prime members, who pay an annual $79 fee to get free shipping on purchases. That makes it cheaper than Netflix, which based on an $8 per month streaming-only subscription, would cost about $96 a year.

—James K. Willcox