In the US Amazon has moved to extend its dominance in the home movie market with the introduction of its much-rumoured on demand service that is a direct competitor to Apple's iTunes.

Amazon.com customers can now instantly watch ad-free movies and television shows on Macs or PCs with Amazon Video On Demand, the digital video service offering thousands of movies and television shows from $1.99.

Previously, customers could only download titles and watch them on a PC (using the Amazon Unbox application) or on their TiVo box. Now customers can either watch instantly within their web browser or still chose to download using the Unbox application and watch anytime.

Additionally, customers can now rent or purchase Amazon Video On Demand movies and TV shows directly through Sony’s Bravia Internet Video Link device on compatible Bravia television sets.