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The e-tailer's current chief operating officer replaces founder Scott Blum, who will remain chairman of the board.

E-tailer on Tuesday said it had named Neel Grover, its chief operating officer since October 2004, to be its new chief executive officer as of May 19. Founder Scott Blum, who had served as CEO since taking the California-based Internet store private in 2001, plans to remain chairman of the board of directors.

The outgoing CEO said in a statement that the transition is "consistent" with the division of roles that already existed between the two executives. Blum, who said he had been concentrating largely on "identifying strategic opportunities in the convergence of Internet retail, media, and advertising," earlier this month through which users can download HD-quality TV programming.