Amazon.com Turns To The Silver Screen

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February 21, 2001 (5:57 PM EST)

By Jill Morneau,

Amazon.com, in search of elusive profits, is going to the movies.

The Internet retailer announced a partnership on Wednesday with MGM Home Entertainment, through which it will offer 99 titles from MGM's Movie Vault on VHS format for $7.99 each.

"It's great for MGM because they have unlimited shelf space and it's also great for our customers who have been asking for these titles," said Amazon (stock: AMZN) spokeswoman Emily Glassman.

In its search for new revenue streams, earlier this month Amazon launched its Software Downloads Store, where customers can download software directly to their computers from the site or request that software be shipped to their home or office. The online retail giant also started Amazon Honor System, a program that allows website visitors to donate to charitable sites.

"They're trying to find a lot of different options. They're throwing a few against the wall, and seeing which ones stick," said Christine Loeber, program manager of online retail strategies with the Yankee Group, Boston.

Barrett Ladd, retail analyst with Gomez Advisors, Waltham, Mass., said that the partnership with MGM could help the company move to profitability.

"Anything new on the site needs to be something that will contribute to profitability in the near future," said Ladd. "[The partnership with MGM] provides more options for consumers."