The emergence of Netflix and other online DVD rental stores has kicked the floor out from under traditional bricks-and-mortar stores such as Blockbuster, forcing them to rapidly change their business models. However, the movie industry has always been a step or two behind the music industry, where iTunes recently surpassed WalMart as the leading provider of music in the United States.

Thus, the news of Amazon introducing a new online store of movies and television shows drew quite a bit of attention in the last while. Taking the highly original name ‘Amazon Video on Demand’, the store offers its users new levels of convenience.

Unlike iTunes or Amazon’s first online video store (Unbox), users do not have to download an entire file before watching it. Rather, any of the films or television shows (there are currently 40,000 titles available) can be streamed directly, allowing viewers to watch their selections immediately; meaning that consumers won’t even have to endure a short drive or, heaven forbid, a walk to the local rental shop. Netflix also offers online streaming but, unlike Netflix’s bundles, Amazon’s users pay for their content a la carte.

Not having to download files means that users are able to create their own online libraries of all purchased content that can then be accessed through any terminal via an account login (rentals last 24 hours).

The above, while being a significant step on the road of technological advancement, is by no means awe-inspiring news. However, the following does promise so much more: Amazon is aiming for unprecedented levels of convenience by setting on a quest for the pot of gold at the end of the technology and media rainbow - direct synergy between online and television.

Having struck a deal with Sony, Amazon’s video store will now be made available through the Sony Bravia Internet Video Link, a $300 device that plugs into Bravia television sets. Now the entire experience is more integrated than ever before - instead of just being a mouse-click away, the store now just requires a flick of the remote. It’s never been easier for couch-potatoes to get their fix.

Credit: JC

Robert Jacobs, a manager at Sony Electronics says, “Creating this on-demand available-everywhere access to premium content is going to be very attractive to consumers.”
Videos can be watched in full screen, in a pop-out or embedded into a viewer’s browser. Reportedly, viewing quality is pretty solid in its smaller size, but still leaves a bit to be desired when viewed in full-screen mode (with Netflix currently setting a pretty high bar, I’m sure that Amazon will be raising their game on this count).

Currently, all the major studios have signed up to this, with the sole exception of Disney and its subsidiary ABC (probably due to the Steve Jobs/iTunes link). However, massive royalty costs and low demand for the $300 price-tag mean that Amazon probably won’t be expecting the big bucks to be rolling in just yet.

Still, one cannot ignore the significance of television and online being brought closer together. Aside from just tapping into a new segment that is adverse to typical online transactions, retailers will now bring their wares ever closer to a point where the market is likely to convert - illustrated by the fact that the first two minutes of the video will begin playing when one visits the product page.

Amazon's move can probably be attributed to its execs realiising that a critical mass has been hit within the market, and that consumers are ready to begin engaging with this new technology. With competition expected to respond on all fronts, the $300 price should begin to slide pretty soon and new and exciting ways of consumers getting their hands on content can be expected in the near future.