Amazon Challenges Netflix by Taking Video Service Global

Amazon Challenges Netflix by Taking Video Service Global
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Amazon is preparing to take its video streaming service worldwide in a challenge to Netflix, according to Bloomberg. Amazon, which currently offers the service in only a handful of countries, announced the plans in a blog post about “The Grand Tour,“ a lavish new reality show featuring the former stars of BBC’s popular “Top Gear.“

“In December, the show will premiere in 200 countries and territories around the world, exclusively on Amazon,“ the company wrote on its website. Chief Executive Officer Jeff Bezos also mentioned the plans on Twitter. Amazon, the world’s biggest online retailer, has spent billions of dollars licensing programming and producing original shows and movies as part of its Prime service. Customers who pay $99 a year for free shipping and other benefits get access to a library of new and older content at no added cost.

The expansion of the company’s video service is one of the biggest challenges yet to Netflix, which operates in more than 190 countries after completing its international rollout in January. It is available everywhere except Syria, North Korea, China and Crimea, the company said at the time. Sally Fouts, an Amazon spokeswoman, declined to comment. The online retailer has funded its video service to increase sales of other products such as shoes, laundry detergent and books. People who watch videos on Amazon are likely to stick around and shop for other products as well.

To offer video service around the world, Amazon has to obtain global rights and satisfy local regulators. The company began seeking worldwide rights to shows this year, a sign of its plans to expand, according to people familiar with the matter who weren’t authorized to speak publicly and asked not to be identified.