More rumors are surfacing for this. Source Wall Street Journal at Hacking Netflix:
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Amazon.com Inc. is developing a Netflix-like subscription service that would offer TV shows and movies, according to people familiar with the matter. That service would be included as a bundle with its Amazon Prime shipping service, which costs $79 a year, those people said. An Amazon spokesman didn't respond to a request for comment.
Amazon is an interesting competitor as they offer new releases on a pay-per-view basis, instead of Netflix's DVD approach, and Amazon Video On Demand is available on a number streaming devices like the Roku Player, TiVo, Blu-ray players, and more."
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