Joining Amazon and many others, Overstock.com is planning a subscription-based streaming-video service.
The service, launching later this year, expects to offer about 30,000 titles and eventually create its own content, officials announced at the National Association of Television Program Executives (NATPE) Conference last week in Miami.
Overstock.com, which claims to be second only to Amazon in online sales, gets 25 to 40 million unique visitors a month and plans to use an analysis of search and purchase history to determine what kind of movies and TV shows to make available.
The service would be tied to its Club O membership program, which offers members a five to 25 percent return on all purchases, a 40 percent discount on select items and free shipping on all orders. Membership costs $19.95 per year. Members will pay an additional fee for streaming videos.
"Introducing this service allows us to engage with our customers on a deeper level and show our appreciation to Club O members for being loyal to us over the years," said CEO Patrick Byrne at the conference, according to Loyalty 360.
An unidentified third-party partner will run the service content from major networks and studios.
Netflix and Hulu are among Amazon's competitors in the streaming game. HBO, Nickelodeon and Dish Network are also entering the fray. But Overstock.com's service appears to largely be a competitive response to Amazon.
Amazon $99-a-year Prime program offers free two-day shipping, unlimited access to streaming video, music and books, and unlimited photo storage. Its original series, "Transparent," recently won two Golden Globe awards and it just revealed plans to launch full-length feature films. Prime members gain access to the films four to eight weeks after their theatrical release.
"We think our loyalty program is better than Amazon's," said Mr. Byrne, according to the Hollywood Reporter. "We give you five to 25 percent back on what you spend. So we pay people back for their digital downloads."
Retailers such as Walmart and Target also offer digital video service although they're not subscription-based or directly tied to loyalty programs.
- Overstock.com Plans Streaming-Video Service - The Wall Street Journal (sub. required)
- Overstock.com to launch Amazon video-streaming competitor - CNET
- Overstock.com Taking On Amazon With VOD, Streaming Services - Hollywood Reporter
- Overstock.com Aims to Heighten Customer Engagement with Video Streaming Service - Loyalty360
- What do the Golden Globe wins really mean for Amazon.com? - RetailWire