As reported earlier this year, Amazon has set its sights on video, having diverted its attention away from music-themed offerings because of what it sees as Apple's unassailable supremacy.

Amazon is preparing to launch a digital video download service mid-August, allowing consumers to download ad-free, digital versions of full-length movies and TV shows, either via a subscription service or a download at a time, reports AdAge. The Amazon Digital Video (aka Amazon DV) will have users install desktop software, ostensibly similar to iTunes.

Amazon's focus on video rather than music makes sense in light of the looming battle between dominant Apple and challenger Microsoft, which recently confirmed that it plans to release its own music service and portable media player this year.

"Right now we've got music services all over the place, but video is not cooked yet," Rob Enderle, principal analyst at Enderle Group, is quoted as saying. "Amazon sees that as an opportunity to step into the space and own it. And a lot of their business is selling DVDs."