Amazon.com wants to launch a service that allows users to download movies and TV shows and burn them to CDs, and it's in talks with Hollywood studios to arrange a deal, reports the New York Times. If the negotiations succeed, Amazon would be in a position to rival Apple's iTunes. So far, it's talking with Paramount Pictures, Universal Studios and Warner Brothers.

Amazon is also working on a digital download service for music and an Amazon-branded portable MP3 player to compete with Apple's iPod.