Amazon Commits to Studio Streaming Format (AMZN, BBY, WMT, TWX, CMCSA, SNE)

When a group including movie studios and streaming video companies released a new streaming format called UltraViolet last October hardly anyone noticed. That’s likely to change now that Amazon.com (NASDAQ: AMZN) has committed to support the new format. The group includes streaming video providers Best Buy Co. Inc. (NYSE: BBY) and Wal-Mart Stores Inc. (NYSE: WMT), studios and content producers Time Warner Inc. (NYSE: TWX) and Comcast Corp. (NASDAQ: CMCSA), and equipment makers Sony Corp. (NYSE: SNE) and Samsung.

UltraViolet allows consumers to purchase content, store it in the cloud, and view it from any supported device. Consumers can also store a copy of DVDs they already own on the UltraViolet system, thus protecting their previous investment.

Content producers favor the UltraViolet approach because consumers have to purchase the video, rather than just rent it because purchases are more profitable to the studios and TV producers.