Amazon in Talks for Movie and TV Downloads

Online retailer Inc is holding talks with three Hollywood studios on creating a service to allow consumers to download movies and television programs and copy them onto DVDs, the New York Times reported on Friday.

Citing three people briefed on the discussions, the Times said Amazon is in advanced negotiations with Paramount Pictures, Universal Studios and Warner Brothers. The report did not give a timetable or estimate cost of such a service.

Such a fee-based service could compete with new video download options available at Apple Computer Inc.'s popular iTunes digital download store.

In February, sources familiar with the matter confirmed that Amazon is in talks with four major music labels on starting a digital music service.

Warner Brothers is part of Time Warner Inc., Universal Studios is owned by General Electric Co.'s NBC Universal and Paramount is part of Viacom Inc..

Amazon officials could not immediately be reached for comment on the report.

Copyright 2006 Reuters Limited.

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