According to reports, the new service will offer around 40,000 movies and TV programmes on a streamed basis. This differs from those of Apple's iTunes, which download videos to users' computers.
Amazon Video on Demand will be accessible to a small number of Amazon.com customers before it opens to the wider public later in the year.
Films and TV shows from almost all the major Hollywood studios and TV networks are available for sale or rental via the service.
According to The New York Times, the video store will be accessible through the Sony Bravia Internet Video link, a $300 device that channels web video directly to Sony television sets.
Amazon did not respond when asked to comment.
United Kingdom
Amazon.com to launch TV and movie VoD store
LONDON - Amazon.com is to launch a new online VoD store of TV shows and movies, called Amazon Video on Demand, taking it into competition with Apple's iTunes and the BBC iPlayer.
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