Amazon VOD (US-only) has a library of over 40,000 movie and TV titles, with new releases offered on the same day they are released on DVD, something that Netflix is currently unable to match, instead focusing more on back catalog material offered as part of a fixed monthly subscription that also includes traditional DVD rentals by post. In this sense, the two services both compete and complement each other, depending on how much and what kind of content customers want to consume.

See also: No more downloads, Amazon moves its online video store to the cloud

The Amazon tie-in also takes advantage of the e-tailers’ expertise in ‘cloud’ computing. Since the Roku digital video player is only capable of streaming not downloads, purchases are stored on Amazon’s own servers, making it possible, for example, to begin viewing a movie on the PC and then continue on the TV via a Roku set-top box.

Video demo courtesy of NewTeeVee after the jump…

Amazon VOD on the Roku from Chris Albrecht on Vimeo.

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Roku and Amazon

Roku’s set-top box will soon be adding support for the streaming version of Amazon’s on-demand video service. Previously, the hardware was a one trick pony, with Netflix ‘Watch Instantly’ functionality only. From the press release: “Beginning in early 2009, the Roku Player… will offer access to Amazon Video On Demand’s more than 40,000 commercial-free movies and television shows enabling Roku customers for the first time to watch new release movies titles instantly.”

LG and Netflix

LG and Netflix’s partnership isn’t new but it’s taking a new turn hardware-wise. This time, LG is to bypass the set-top box altogether, adding Netflix streaming support to new range of Internet connected TVs.

Intel and Adobe

Flash video coming to a TV near you if Intel and Adobe have their way. The two companies announced that they are collaborating to bring Adobe Flash to Intel’s Media Processor CE 3100, a chip designed for set-top boxes, Blu-ray Disc players, digital TVs and other consumer electronics. This is expected to pave the way for “richer and more seamless Web-based and video viewing experiences”, according to the joint press release. It’s more evidence of Intel’s intention to further spread its wares beyond traditional PCs, and in particular new Internet-connected TVs — see Deja vu: Internet ‘widgets’ coming to the TV in 2009.

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Gone are the lengthy downloads or the need to install special software, and instead, “Amazon On Demand” utilizes streaming so that content begins playing almost immediately all within a standard web browser. Additionally, the relaunched service is now Windows and Mac-friendly, and will also be available through Internet-connected televisions, starting with Sony Bravia TVs that are compatible with the company’s rather costly Bravia Internet Video Link device.

“For the first time, this is drop dead simple,” Bill Carr, Amazon’s vice president for digital media, tells the New York Times. “Our goal is to create an immersive experience where people can’t help but get caught up in how exciting it is to simply watch a movie right from Amazon.com with a click of the button.” Around 40,000 television episodes and movies are available, both rental and to-own, with the same pricing scheme as the original UnBox. Television episodes cost $1.99, movies range from $7.99 to $14.99, and movie rentals cost $3.99. Almost all of the big studios and television networks are on board, with the exception of Disney, where Apple CEO Steve Jobs is the largest shareholder. (We’re seeing a pattern here: Disney also snubbed Sony’s new video download store, launched earlier this week.)

Cloud television

Not only is Amazon utilizing streaming in order to deliver “instant” playback but it also means that content doesn’t have to be permanently stored on a user’s hard drive. As a result, Amazon is able to offer another potential benefit to customers: a virtual video library of previously purchased content, stored in the ‘cloud’ (on the company’s own servers) ready to be streamed as many times and to as many compatible devices as the user has access to. While this will initially consist of PCs running Mac OSX or Windows, along with select TVs from Sony, in the future this could extend to many different devices, either through specific partnerships like the one currently forged with Sony, or by utilizing browser-based standards or any other technology or protocol Amazon chooses to support.

“Our goal is to continue to establish partnerships with all companies who have a connected device” says Carr. “Creating this on-demand available-everywhere access to premium content is going to be very attractive to consumers.”

Also see: Amazon in your living room: today and in the future

Additionally, since content isn’t stored permanently on a user’s hard drive, the studios’ concerns about piracy is less of an issue. And for consumers, the inconvenience caused by the use of copy-protection technology in the form of DRM becomes much less apparent.

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