Amazon.com, the leading online seller of books and music disc, has today
announced that starting immediately, the company also offers movies, both on
video tape and DVD format. The company also opened the doors to its online-video
section today on the company’s website. As a result of this
step, the company’s stock immediately rose 6-1/4 while stock price of their biggest competitor in the video field, Reel.com
fell 1-5/16 immediately after the announcement. With its agressive advertising
campaign earlier this year, Reel.com had been able to quickly established itself
as the leading online retailer for video.

Amazon.com now offers more than 60,000 theatrical and general-interest videos and
more than 2,000 DVDs. The video store section was announced just in time for
the holiday shopping season, which experts expect to be particularly strong
for Internet retailers this year.

Amazon.com also unveiled its Gift Store today, which offers a selection of personal
electronics, gadgets, games, and toys that can be purchased and shipped
directly to others.