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We all know what’s coming to living rooms across the globe in the next few years: DVD’s are dying and streaming media will rule your living room.  We’re already seeing the effect with Netflix, as many of their movies can be watched straight from your computer streamed through their web interface.  You can do the same thing with Amazon’s Video OnDemand service, the difference being the types of movies available.  Netflix lets you stream mostly older flicks (with new releases available through the standard DVD through the mail), while Amazon lets you stream new releases, but makes you buy older DVD titles through their store.

So you can see how the two joining forces makes a lot of sense.  Rumors were swirling today, after a Bloomberg report surfaced stating that Netflix stock was way up on acquisition rumors, most of which had Amazon involved. The stock price was up over 5% to 42.19 – it’s highest level in 11 weeks according to the same Bloomberg report:

Another tidbit I thought of is that while Amazon is busy purchasing Netflix, they may want to think about purchasing TiVo as well to position themselves better with the sure to be long drawn out battle with Apple over the streaming movie. Apple is already very well positioned to be the market leader for years to come with the Apple TV and iTunes movies.

If Amazon and Netflix could team up with TiVo, who already has a proven component that can store movies as well as record TV, then that might be the winning service. I know this may be far fetched, but after TiVo’s reported dismal first quarter, perhaps it’s a possibility?  In any case, it’s an interesting case to watch.  More from Techcrunch here:

http://www.techcrunch.com/2009/07/13/rumor-amazon-wants-to-rent-netflix-and-never-return-it/