Update: Amazon also bought BookSurge earlier this year, an on-demand book printing company. The purchase of CustomFlix makes a lot more sense now.
I was just informed by a trusted source (also confirmed by a call to CustomFlix) that Amazon.com has acquired CustomFlix, a company that publishes on-demand DVD titles. From the CustomFlix Web site:
The CustomFlix mission is to help independent filmmakers, content owners, educators, and video producers make their programs available to a worldwide audience. With its unique on-demand video publishing service, the company has brought together the best components of duplication, encoding, DVD authoring, streaming video preview, e-commerce, and the Internet to give video professionals a revolutionary new way to bring a few or a few thousand copies of a program to market.
This is an interesting deal, but CustomFlix is not a competitor to Netflix. Instead, if you have created a movie on DVD you can use CustomFlix to get into Netflix, Greencine, etc. Here's an example from their Web site of an on-demand DVD that was picked up by Netflix (American Aloha):
Here's more information on the CustomFlix On-Demand service.