Amazon is about to announce a movie download service to complement its existing DVD and VHS sales rentals according to Advertising Age magazine.

In the article it says that "Along with ordering VHS and DVD versions of movies, consumers will soon be able to download ad-free, digital versions of full-length movies and TV shows from Amazon".

Supposedly a year in the works, the e-tailer's digital-video-download service is set for a mid-August launch and will feature a subscription service and a la carte movies and TV shows.

The report says the service, which is referred to as Amazon Digital Video - or Amazon "DV" is hoping to break new ground feeling that the music market has already been sown up by Apple and its iTunes Music Store offering.

Amazon's service will require users to install software on their computers to allow them to buy videos a la carte, likely as part of a download-to-own model, or subscribe to them, like a digital version of Netflix's rental model.

Earlier in the month CinemaNow announced that it will be offering a download-to-burn service that allows customers to burn movies they buy online to DVDs that can be played in a standalone DVD player.

Via

Advertising Age