Amazon is fighting back against the likes of Apple and Netflix by launching its own video streaming service. Unlike its existing Unbox service, the new system doesn’t require any extra software or hardware beyond the latest edition of Flash.

The Unbox system, which launched in 2006, allows users to either watch on Windows Media Player, or to stream the files to either a Tivo or selected portable media devices. Because it uses digital rights management, it doesn’t work on Macs or Linux PCs.

Amazon Video on Demand will play directly in the user’s internet browser. It has around 40,000 movies and TV shows, eight times that of Unbox. However, HBO and Disney (including ABC) aren’t signed up yet.

There are no subscription options, with all programming bought on a pay-per-view basis. Customers can either rent a movie or show and watch online within 24 hours, or buy it outright. It appears that this option simply gives you permanent online access to the title rather than letting you download it (and potentially transfer it to another computer. However, you’ll be able to access it from any internet-linked computer – or even let others do so if you’re prepared to give them your log-in details.

Owners of Sony’s Bravia HD sets can also watch directly on their TVs if they buy a $300 internet link device. It’s tough to imagine this is going to be a significant selling point for either the service or the TV sets.

The service is currently in beta testing, with a planned launch later this summer. PC World’s Ian Paul, who took part in the testing, reports the video streams well and is good quality, though not as good as Netflix once you go to full-screen mode.

The question now is whether Amazon’s strong brand image and ease-of-use will be enough to persuade buyers to watch video on their monitors. If that doesn’t work out, they’ll have to take another look at producing a streaming-to-TV service that is easy to use and addresses piracy concerns.

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Entry was posted on Thursday, July 17th, 2008 at 2:26 pm under Amazon.

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