Shares of Netflix fell Tuesday on news that Amazon.com has inked a deal with a rival provider of on-demand movies and TV shows, days before the anticipated release of Amazon's new tablet computer. - 

Shares of Netflix are down about 10 percent this morning. Not because of anything Netflix did, but because of something Amazon did.

The online retailer has inked a deal with Epix that doubles the number of movies in Amazon's library. The move comes just as Amazon is reportedly preparing to launch the next version of its Kindle tablet.

John Moe, host of Marketplace Tech Report, highlighted the significance of the deal in an interview this morning.

"Amazon is catching up," Moe said. "Netflix has always prided itself on having the biggest catalog and as you and might recall from days of yore when video stores roamed the earth, you wanted to go to the one that had the most boxes on the walls.

"It makes it a little less special to go to Netflix," he added.




Follow John Moe at @johnmoe