After at E3, Microsoft and Netflix has announced a partnership thanks to which the Xbox Live users will have access to tons of movies and TV shows, now it’s Amazon’s turn to speak about its planned Amazon Video on Demand, or for shortly Amazon’s VoD.

This is not the first venture of amazon in the realm of movie distribution through Internet. Amazon already has Amazon Unbox, a video download store which was launched in September 2006.

Though, despite the fact that Amazon didn’t provide any details about the sales registered on Amazon Unbox, the service is not considered a match for Apple’s iTunes.

However, Amazon’s VOD will not be an extension of Amazon Unbox, but a totally new service. Practically, the customers of Amazon’s Video On Demand will be able to choose from 40,000 movies and television programs. They can start watch their favorites shows immediately after completing the order because they stream, just like programs on a cable video-on-demand service.

According to The New York Times, which has spoken with Bill Carr, Amazon’s vice president for digital media, Amazon’s goal is “to create an immersive experience where people can’t help but get caught up in how exciting it is to simply watch a movie right from Amazon.com with a click of the button.”

Also The New York Times reported that Amazon’s VoD will be available through Sony Bravia Internet Video link, a $300 device for Sony’s high-definition televisions.In the future Sony intends to embed the Amazon VoD as a standard feature.

Sony Pictures will offer the upcoming Will Smith movie called "Hancock" for free to all Internet-connected Bravias before the movie's DVD release in November.

Although, Amazon’s initiative seems interesting, the biggest Internet retailer is facing a strong competition. Earlier this year, Netflix unveiled a 5-inch-by-5-inch device, made by Roku, that streams more than 10,000 movies and TV shows from the Netflix library, through an ethernet or Wi-Fi connection.

Users can fast-forward and rewind the video streams with a remote control. The box was sold through Roku's site and earlier this month Tim Twerdahl, Roku's vice president of consumer products, said for Forbes that the initial shipment was sold out in three weeks.

Netflix by Roku is priced at $99 and it grants access to only 10,000 titles of the Netflix’s 100,000 movies.Along with the Roku device, two other Netflix players with added features like DVD or Blu-ray playback are expected to launch in the second half of 2008, from manufacturers including Korea's LG Electronics with whom Netflix partnered in January.

Also, two days ago, Microsoft announced its new collaboration with Netflix that will allow its console to stream shows and movies directly on TVs.

This new service is intended to complement the already-made available Xbox Live Video Marketplace, rather than to replace it. Those lucky Xbox owners who had already subscribed to Netflix and currently have an Xbox LIVE Gold account will get the service for free.
For the time being, the list of movies and shows has about 10,000 entries; gamers will be able to access the service later on this year and will gain control of the media by using the Xbox 360 controller or Media Remote.

Netflix, Inc. of Los Gatos, CA, currently has more than eight million subscribers. The company has been doing quite well and is now making a lot more money than it used to, with earnings of $49 million in 2006 compared with a $6.5 million profit in 2003 for instance.

Also, at E3, Sony launched its own movie and television sales and rental service which went live at the PlayStation Network. The content is provided by Fox, MGM, Disney, Paramount and Sony Pictures and the TV shows are available for 1.99 dollars per episode, while the movies can be rented for prices between 2.99 to 5.99 dollars. Those customers who wish to buy a movie will have to spend 9.99 or 14.99 dollars.

And, of course there is Apple TV. So far, Apple’s device failed to be a success, but in January at MacWorld, Steve Jobs introduced a new, cheaper, version, along with the introduction of movie rentals on iTunes.

Apple TV Take Two has new software that ensures a seamless integration with Movie Rentals, allowing movie fans to rent and watch movies right from their widescreen TV, with no computer required. A 40-gigabyte model is sold for only $229, while a 160-gigabyte model costs $329.

Apple has added the movies to its iTunes catalog in September 2006, but due to the lack of initial support from the movies studios, the business was going slowly, compared to the sales of digital music.However, earlier this year Steve Jobs managed to convince all the major Hollywood studios to join iTunes and last month the Cupertino company said that iTunes customers are buying 50,000 movies per day.

In May, Apple has announced that it would sell movies through its iTunes on the same day as the titles are released in DVD form.Studios previously gave DVD releases a head start of as much as 30 to 45 days over other distribution outlets to help preserve a major income source.

Also, in April there were rumors that Blockbuster is secretly working on a device which will allow video content to be streamed directly to a TV. Apparently the content will be provided by Movielink, a former joint-effort of MGM, Paramount, Sony, Universal and Warner, which was acquired last year by Blockbuster. Movielink has a library of 6,600 movies.

As you can see Amazon’s VOD is facing tough competitors. It remains to be seen how successful it will be.