Amazon Eyes Streaming Video

Wired.com reports: Video streaming of premium content is suddenly the internet’s hot pursuit. The latest horse in the race is Amazon, which is reportedly planning a very Netflix-like service that would provide unlimited access to a limited selection of movies and shows for a flat monthly fee.

The Wall Street Journal, citing “people with knowledge of the proposal,” says Amazon is talking to NBC Universal, Time Warner and Viacom, among others, and hopes to launch by the holiday season. But the people the newspaper talked to also say it isn’t clear if any media companies are on board.

If the reports are correct, Amazon would join an increasingly crowded pack. Google is working on a set top box that would blur the line between TV and internet fare, YouTube is said to be planning mainstream film rentals and Apple is expected Wednesday to re-launch Apple TV as iTV, complete with 99 cent TV show rentals.

Amazon has long been in the video-on-demand business with “Unbox,” an a la carte rental service that allows streaming on computers, internet-connected TVs and through XBox 360. The new service would charge a flat monthly fee instead of pay-per-view pricing.

In a few short months the prospect of what would be a paradigm shift in viewing choices seems to have drastically improved, away from physical media and dependence on the networks, cable companies and satellite services for TV programming on their schedule.

The patchwork of alternative choices is already dizzying — check out “Wired’s Guide to Picking Your Perfect TV Setup” — and the prospect of TV everywhere and DVD anywhere is very tantalizing. But in the short term the studios and networks still hold all the cards, and they like the current business models just fine.

For more on streaming video, go to Wired.com Epicenter.