The video-download service is planned to start in August and it is going to feature a subscription service for movies and TV shows.

The service, which is known as Amazon Digital Video (or Amazon DV) has changed over the past year from a music download to a video based one, according to production-studio and TV-network executives briefed on the plans. The reason for it is that at the moment Apple already holds such a large share of digital-music sales that Amazon felt it would be very complicated to break into the market.

The service will require users to install special software on their computers to allow them to buy videos. The executives at lots of TV networks claim they have been working with Amazon and hope to be on board at launch, but at this moment ABC company is not on the list.

Amazon’s change of the plans and tendency to switch to video also hints at a reluctance to take on not one, but two behemoths battling over online music sales. iTunes holds over 67% share of music sales, Microsoft plans to create new service, called Zune. Microsoft is thought as the only possible competitor to iPod & iTunes combo. At the same time, the Microsoft player is developed by J. Allard, who successfully placed Microsoft at the gaming market previously held by Sony and Nintendo.

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[tag] Amazon, Microsoft, iPod, iTunes, Microsoft player, Sony, Nintendo, ABC, Apple [/tag]

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