Amazon.com in Talks With Studios About Movie Downloads

Amazon.com is in talks with three Hollywood studios about starting a service that would allow consumers to download movies and TV shows for a fee and burn them onto DVD's, according to three people briefed on the discussions.

If the advanced negotiations are successfully concluded, Amazon's service would position itself in the media world alongside rivals like Apple Computer's iTunes as a place where people go not just to order goods to be sent by mail, but to instantly enjoy digital wares as well.

So far, Paramount Pictures, Universal Studios and Warner Brothers are engaged in the talks, said one person close to the talks who, like the others, asked not to be identified because the negotiations are continuing.

Although it is not clear when it might begin, an Amazon downloading service would be sure to send waves through both the media and retail worlds. Players in both industries are racing to offer new ways to give technology-savvy audiences instant access to their favorite shows and songs, in a field crowded with potential rivals using Internet and on-demand technologies.