Amazon is officially in the downloading movies business.

In a story from Variety, the company launched Amazon Unbox this past Thursday. The site has deals with all of the major studios except for Disney, MGM and Lionsgate. Amazon enticed studios because "it is paying wholesale rates in line with those of DVDs."

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iTunes, which is also expected to start offering feature films, "is looking to pay less than DVD wholesale rates for digital downloads of new releases," thus it is having problems getting the major studios on board.

Currently, on Amazon they are not "tying" downloads of movies into their brisk DVD business. They also say that their downloads of films are of better quality than DVDs, and "consumers can purchase" a movie "on one computer and download on another, allowing them to buy a movie at work and watch it that evening at home.

Lastly, Amazon is initially making their films available for $7.99 and $14.99. Television shows are being sold for $1.99 an episode, and the company is also offering "online rentals for $3.99."

Evan Jacobs at Movieweb
Evan Jacobs