Amazon.com Inc. AMZN recently announced a multi-series content licensing agreement with CBS Corporation (CBS) to extend the archive of television shows and films on its video streaming site, Amazon Prime Instant Video.

Amazon Prime Instant Video is a digital video streaming and downloading service that allows users to rent, buy or subscribe to a range of video content.

The new CBS deal, which extends through 2018, will make the episodes from CBS' new summer series available on Prime Instant Video. The episodes will be available for just four days after they go live in summer 2016. Also, well-liked programs like Medium, The Tudors, The L Word, Twin Peaks, America's Next Top Model, I Love Lucy, Penn & Teller, The Amazing Race, MacGyver, Brotherhood and Sabrina, the Teenage Witch will be available.

With the Prime Instant Video service gaining popularity, Amazon has been increasingly focusing on developing original content to reduce its dependence on content providers like HBO. The company has been producing its own shows such as the award-winning transgender comedy, Transparent, and many such to draw subscribers. However, the company's original content has not been much of a success.

Thus, in order to promote movies and television shows on its streaming video service, the online retailer has been entering into a number of deals with major Hollywood studios as well as cable networks. Amazon had earlier signed a deal with CBS Corp for the web rights to popular TV shows like Extant and Under the Dome based on Stephen King's acclaimed novels.

We believe that adding to the Prime Instant Video bank is a key strategy of the company to strengthen its position against Netflix, who bought the exclusive U.S. video-on-demand rights for CBS Corp's drama series Zoo.

Amazon is one of the leading players in a fast-developing market. In the second quarter of 2015, the company's revenues of $1.82 billion jumped 16.5% sequentially and a massive 81.5% year over year. Both product and service sales grew in double digits from the year-ago quarter, and contributed 79% and 21%, respectively, to total revenue.

Amazon currently has a Zacks Rank #3 (Hold).

Stocks that Warrant a Look

A couple of better-ranked stocks in the same industry are Stamps.com Inc. STMP , Travelport Worldwide Limited TVPT and Autobytel Inc. ABTL . Both Stamps.com and Travelport Worldwide sport a Zacks Rank #1 (Strong Buy), while Autobytel carries a Zacks Rank #2 (Buy).

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AMAZON.COM INC (AMZN): Free Stock Analysis Report

STAMPS.COM INC (STMP): Free Stock Analysis Report

TRAVELPORT WWD (TVPT): Free Stock Analysis Report

AUTOBYTEL INC (ABTL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.