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Netflix, Amazon discussed collaboration

Thu Nov 30, 2006 12:52pm EST

Reporter's Notebook

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NEW YORK (Reuters) - Netflix Inc. (NFLX.O: Quote, Profile, Research, Stock Buzz) has had discussions with potential rival Amazon.com Inc. (AMZN.O: Quote, Profile, Research, Stock Buzz) about selling online DVD rental subscriptions to Amazon customers, an arrangement that a top Netflix executive described on Thursday as "ideal for us."

Netflix has considered buying advertising on Amazon packaging to reach its shoppers, who are clearly comfortable with online transactions.

"Amazon has a desirable customer base that we would love to market to...it's an e-commerce consumer," Netflix Chief Product Officer Neil Hunt told the Reuters Media Summit. "It's a consumer who would be ideal for us. Some kind of arrangement there would be attractive."

Amazon has launched a movie download service and a U.K. online movie rental service, and once was rumored to be considering opening a U.S. DVD rental service.

Netflix and Amazon have had on-and-off discussions about working together for about three years.

 
 
 
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