, Shutterfly to Offer Photo Service

Web retailer (AMZN) Monday said it would offer online photo developing services through a partnership with leading Internet photo service Shutterfly (search) as it targets a fast-growing market.

Terms of the agreement were not disclosed, but Amazon said the service would allow customers to design photo cards, calendars, photo books and gifts such as mugs, T-shirts and other personalized products.

Privately held Shutterfly competes in the online photo finishing market with sites run by Eastman Kodak Co. (EK), Hewlett-Packard Co. (HPQ) and a host of others, including retailers such as Wal-Mart Stores Inc. (WMT), Best Buy Co. (BBY) and Ritz.

The deal comes as Amazon, which started off as an online bookseller, has looked to expand its presence in digital media. Last month, the company bought DVD-on-demand site CustomFlix and is reportedly considering getting into the music download business.

The Seattle-based company also recently began offering its Amazon Shorts service, which allows consumers to download short stories from best-selling authors such as Danielle Steel.