Exclusive: Amazon buys comedy service Rooftop Media to expand digital content

NEW YORK (Reuters) - Amazon.com Inc is buying online comedy service Rooftop Media, as the Internet retailer pursues its ambition of building a digital media library to rival Netflix .

While the deal is small, it underscores Amazon's intention of buying content to round out its online service. Its increasing spending on digital media has helped keep the company in the red, inviting criticism from investors.

Audible, the audiobooks service it bought in 2008 for $300 million, is picking up the 10-person startup for an undisclosed sum. Audible founder and Chief Executive Donald Katz said in a statement on Monday the company had been attracted by Rooftop's content as well as its pool of comic talent.

(Reporting by Liana Baker; Editing by Meredith Mazzilli)