Amazon Said to Be Working on Subscription Video Service

Internet giant Amazon is now said to be working on a video streaming service to compete with Netflix in a market that is becoming increasingly interesting for a lot of players.

Amazon already offers a video-on-demand service so the new venture would complement its existing product.

Digital delivery is still nowhere close to where it could have been by this time if the media companies would have taken advantage of the opportunities provided by the web instead of fighting against them.

To date, only Netflix has managed to create a viable streaming product which has proven popular with the users. Hulu offers a slightly different product, mainly ad-supported, but it is the only other significant player in the video streaming market.

Amazon is now said to be in talks with several media companies, like NBC Universal, Time Warner, News Corp. and Viacom, to secure content for its rumored streaming service.

Amazon is positioning itself directly against Netflix, preferring to offer older titles with a flat-rate subscription. Netflix has taken this approach as well, forgoing the right to get new titles straight away in return of better rates for older content.

The new streaming service would be available online and through web-connected devices.

The plan is to launch the new service in time for the holiday season, but all this depends on how things go with the content owners. If Amazon doesn't secure the rights to enough content, the launch may be pushed back or the product may be canceled altogether.

Google is also said to be making a play, but it plans to offer video rentals a la carte through YouTube as supposed to an all-you-can-eat subscription service. Google is also currently in talks with content owners.

Apple is also rumored to unveil a video-on-demand service, through iTunes, later today at an event.