Telefonica in talks to add Amazon video to its services

By BLOOMBERG

MADRID • Telefonica SA is in talks with Amazon.com Inc to add Prime Video streaming to its phone, television (TV) and Internet packages, part of an effort to keep customers hooked on the Spanish carrier’s services, according to a person familiar with the plans.

By offering premium video-on-demand rolled into Telefonica’s services, the company aims to spare customers the hassle of subscribing to content separately. The move also helps ensure that users become more reliant on its packages, said the person, who asked not to be identified because the deliberations are private.

The push to offer more content to its subscribers follows a similar agreement with Netflix Inc in May for Europe and Latin America. Telefonica is now in talks with several other streaming services, including Amazon Prime, for deals that would cover certain markets, said the person. Representatives for Telefonica and Amazon declined to comment.

Telefonica shares declined 0.5% to €7.31 (RM34.81) at 10:24am in Madrid yesterday. The stock is down 10% this year.

Carriers and pay-TV companies once viewed streaming services that let users watch hit TV shows on demand as an existential threat.

Telefonica CEO Jose Maria Alvarez- Pallete is now seeking to hold onto subscribers by offering them the best content, whether it’s produced in-house or not, even as Telefonica plows money into its own original Spanish programming.