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Credit: Reuters/Rick Wilking Tue Sep 4, 2012 12:26pm EDT (Reuters) - Amazon Inc and Epix struck a deal that adds about 3,000 movies to Amazon's video streaming library, ramping up competition with the likes of Netflix and Apple Inc. The agreement gives Amazon Prime Instant Video subscribers access to such movies as "The Avengers," "Iron Man 2" and "The Hunger Games" from Epix studio partners: Viacom Inc's Paramount Pictures, Metro-Goldwyn-Mayer Pictures, and Lions Gate Entertainment Corp. The announcement on Tuesday comes as Epix's 2010 deal with Netflix, which pays $200 million a year for the rights to stream Epix movies to its U.S. customers, expires in this month. Netflix shares were down 7.8 percent at $55.03 in afternoon trading. "It gives Amazon Prime members a lot less reason to also have a Netflix subscription," R. J. Hottovy, an analyst with Morningstar, said of the Amazon-Epix deal. A email sent to Netflix seeking comment was not immediately returned. Amazon did not disclose the terms of the deal, but the company is "investing hundreds of millions of dollars to expand the Prime Instant Video library," Bill Carr, vice president of video and music at Amazon, said in a statement. Apple was also circling Epix. Earlier this year Apple began talks with Epix as it builds out its content offering for its products, including a widely expected full-fledged TV set. The deal with Epix, which brings Amazon's library to more than 25,000 titles, comes as Amazon is expected to unveil a new version of its Kindle Fire tablet this week. Apple is holding a major event on September 12 and is expected to take the wraps off its latest iPhone. (This story corrects deal's impact on Amazon video library in the 1st paragraph; deal adds about 3,000 movies, does not double the library) (Reporting By Jennifer Saba and Liana Baker; Editing by Maureen Bavdek and John Wallace) Tech Deals Global Deals Review: 2011 Q3 Global Deals Review: 2011 Q2 Global Deals Review Inflows Outflows Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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