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LOS ANGELES (Reuters)
Amazon.com Inc. declined to comment on Monday on a report in Advertising Age magazine that it would launch a movie download business in mid-August.
Speculation has swirled for months that Amazon is working on a digital download service that would allow consumers to download and copy popular movies and television programs.
Sources familiar with the matter told Reuters in March that the company was in advanced talks with several major Hollywood studios.
A spokesman for the Seattle-based company wrote in an e-mail to Reuters that it does not comment "on speculation or rumor."
Financial analysts have reacted positively to the prospect of a digital download service that would contribute higher profit margins than the Seattle-based retailer's traditional e-commerce business. The company's spending in research and development has skyrocketed, and many analysts have speculated that Amazon's new digital projects are the cause.
The company is scheduled to report second-quarter earnings on Tuesday.
Amazon already owns movie web site IMDB.com. Sources have told Reuters that Amazon could capitalize on IMDB's fan base and sell them downloads of films that could then be copied onto DVDs.
Shares of Amazon were up 97 cents to $34.16 in Monday afternoon trading on Nasdaq. The stock traded as low as $31.52 in May after a 52-week high of $50 in December.
Amazon.com Inc. declined to comment on Monday on a report in Advertising Age magazine that it would launch a movie download business in mid-August.
Speculation has swirled for months that Amazon is working on a digital download service that would allow consumers to download and copy popular movies and television programs.
Sources familiar with the matter told Reuters in March that the company was in advanced talks with several major Hollywood studios.
A spokesman for the Seattle-based company wrote in an e-mail to Reuters that it does not comment "on speculation or rumor."
Financial analysts have reacted positively to the prospect of a digital download service that would contribute higher profit margins than the Seattle-based retailer's traditional e-commerce business. The company's spending in research and development has skyrocketed, and many analysts have speculated that Amazon's new digital projects are the cause.
The company is scheduled to report second-quarter earnings on Tuesday.
Amazon already owns movie web site IMDB.com. Sources have told Reuters that Amazon could capitalize on IMDB's fan base and sell them downloads of films that could then be copied onto DVDs.
Shares of Amazon were up 97 cents to $34.16 in Monday afternoon trading on Nasdaq. The stock traded as low as $31.52 in May after a 52-week high of $50 in December.