Any way you slice it, companies that are already in the online video business are looking to get deeper in. Reports indicate that Amazon is working to expand their video offerings to include TV and movies from the likes of NBC, Time Warner, and Viacom. The new service would likely be viewable on devices Amazon currently uses for video. Devices like the Roku, Xbox 360, and PC would all fall into this category.
Amazon currently charges $1.99 for many individual TV episodes. The new streaming service would probably be a subscription affair, or would offer cheaper prices. Amazon may provide free subscriptions to current Amazon Prime members, who pay $79 per year for unlimited 2-day shipping on purchases.
As usual, the viability of this strategy is reliant on content creators signing on. No word on that yet, but Amazon will want to hurry if the Apple rumors about $0.99 streaming rentals on iTunes are real.