Report: Amazon jumps into direct competition with Netflix

The battle for online supremacy in premium video content is heating up, according to a report from the Register. Amazon recently confirmed that it would make some movies and TV shows available via streaming for Prime subscribers.

While Amazon uses an annual payment model, rather than a monthly one like Netflix, the idea is the same: Users can pay a subscription fee for unlimited access to a set pool of content, accessible via the internet and certain types of TV and DVD player, the Register reported.

Amazon said recently that, in addition to online digital content, its Prime service offers subscribers unlimited two-day shipping on purchases made through the company. The company also provides for a la carte rental and purchase of a wider set of content, similar in structure to iTunes, via its Amazon Instant Video service.

Google is also thought to be preparing a move into the market for digital premium content. According to tech analysts, the company ironing out details of an online payment gateway and improving its relationships with major content providers in before an expected announcement sometime this year.