• Retuers, Tuesday, January 31, 2006 10:45 AM

Investment bank Stifel Nicolaus claims that online retailer Amazon.com would be "uniquely positioned" to benefit from an entry into the digital download business, after it was reported that the company was actively pursing a partnership with independent studios for content. Daily Variety last week said that Amazon had approached Image Entertainment, Ardustry Home Entertainment and First Look Home Entertainment about the creation of an upcoming download service. An Amazon spokesperson said the report was "speculation," and none of the film studios were able to comment on the report either. In a research note, Stifel Nicolaus analyst Scott Devitt said Amazon is strategically positioned to benefit from a transition to digital media because it's the largest retailer of media products on the Web. He cited Amazon's solid relationship with TV and movie content owners, its loyal consumer base and the company's massive network as competitive advantages to moving into digital downloads.

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