Amazon has denied claims that it is in talks with television broadcasters and media companies to set-up its own internet-streamed TV service. Instead, it says it is working on building its Prime Instant Video service in the US.

"We continue to build selection for Prime Instant Video and create original shows at Amazon Studios, but we are not planning to licence television channels or offer a pay-TV service," Drew Herdener, the company's vice-president of public relations, told Variety.

READ: What is Amazon’s ‘bigger than Kindle’ mystery product? Here's a look at the candidates‏

Herdener did not confirm or deny that the company is working on a set-top-box, codenamed Cinnamon, that many believe will be Amazon's answer to Apple TV. Last week it was revealed that Amazon had hosted a recruitment drive in Boston which included details of a mystery product that will be "bigger than Kindle".

Although there are other theories as to what that might be, the smart money is on a set-top-box that will deliver Amazon Prime Instant Video or Lovefilm Instant in the UK, and a number of partner services.