By Reuters

September 7, 2006

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LOS ANGELES (Reuters)—Amazon.com on Sept. 7 unveiled a widely anticipated Internet service offering movies and television shows that can be downloaded onto consumers` personal computers.

The service, called Amazon Unbox, will offer content from six major Hollywood studios, including 20th Century Fox and Warner Bros., as well as TV networks such as CBS and Fox, and cable channels like Comedy Central and E! Entertainment, the company said in a statement.

Speculation over an upcoming download service from Amazon had been rife for months, with Wall Street considering such a prospect a positive due to the higher profit margins in digital downloads.

Amazon, the No. 2 e-commerce site behind eBay, has seen slowing sales and fewer new product categories into which it can expand.

Spending in research and development at Amazon has surged over the past year and many Wall Street analysts have speculated that a forthcoming download service was the cause.

Amazon customers will be able to buy the film and television show downloads on one computer but download them to another, such as a home computer. The service does not allow consumers to copy the content to a CD.

Amazon said that movies will be priced between $7.99 and $14.99 with television shows at $1.99 per episode. Movies will also be rented for $3.99.

Amazon, which will also offer films from independent studios such as Lions Gate Entertainment and Fox Searchlight, said that content will be available to consumers as soon as the day after a television episode airs.

Popular films available on the service include ``Chinatown`` and ``Walk the Line,`` with television shows including ``CSI,`` ``Star Trek,`` and ``Buffy the Vampire Slayer.``

Warner Bros. is part of Time Warner, and Fox is owned by News Corp.

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