Amazon is also working to expand sales of music. The Web site has relatively stand-ard pricing on current songs, but often offers discounts on older albums. By 2011, Amazon
was also trying to expand into video streaming. Customers who pay $79 a year to join the
4
Prime program gain faster shipping, and also access to a library of digital movies and TV
shows. Unfortunately, with limited ties to the movie studios, the offerings initially were
relatively thin. However, other video streaming sites, including Netflix and Hulu, were also
struggling to develop long-term contracts with studios. In September 2011, Amazon an-nounced a deal with Fox to offer movies and TV shows owned by the studio. At the same
time, Netflix announced a similar deal with the Dreamworks studio. It will take time for
studios to determine strategies on streaming video services and for consumers to make
choices [Woo and Kung 2011].