Amazon is set to launch a TV box later this year to allow people to easily stream video to their living room set.
The service is expected to take on existing broadcasters as well as rumoured TV services from Apple and Intel.
It will use Amazon's existing video services, called Amazon Video on demand in the US and Lovefilm in the UK.
Coming to a living room near you: Amazon CEO and chairman Jeff Bezos holds up the firm's Kindle tablets. It is now believed to be developing a set top box to stream video to a TV
'The e-commerce giant is planning to introduce a device this fall dedicated to streaming video over the Internet and into its customers’ living rooms, according to three people familiar with the project who aren’t authorized to discuss it,' Bloomberg has claimed.
It is believed the set-top box is being developed by Amazon’s Lab126 division in Cupertino, close to Apple's campus, and is being run by Malachy Moynihan, a former vice president of emerging video products at Cisco who also worked for Apple.
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It comes as Amazon has been ramping up its video content.
Earlier this month it introduced 14 televisions pilots, which it financed, and it’s now monitoring customer feedback to decide which ones to produce as full series.
Alpha House, starring John Goodman, the Hollywood actor known for his roles in The Big Lebowski and Argo, is a pilot produced by amazon, and could eventually be watched on a Kindle TV box
The Amazon shows include Alpha House, starring John Goodman, the Hollywood actor known for his roles in The Big Lebowski and Argo.
Bill Murray, of Ghostbusters and Groundhog Day, also appears.
Roy Price, director of Amazon Studios, the unit that is creating the shows, said: ‘I think the distinction between a regular TV show and an online TV show will soon fade away.
Apple's tiny TV set top box is believed to be a precursor to a full TV system to be unveiled next year
‘It just makes sense that if you’re trying to decide what TV show to make, it might be a good idea to ask customers which one they like.’
Each pilot is available on Amazon Instant Video or Lovefilm for free, with viewer feedback deciding which show will get a full series order from the company.
The company has also paid to secure exclusive streaming rights to hit shows such as Downton Abbey.