Amazon.com has let users of its Amazon Prime and Video On Demand services that it will be offering an "unlimited, commercial-free, instant streaming of 5,000 movies and TV shows" service in the near future, reports Variety. This puts the online retailer in direct competition with the leader Netflix, as well as Walmart's Vudu, Best Buy's CinemaNow and Blockbuster's On Demand. Amazon hopes to enter into talks with the major studios to acquire more content soon.

Currently, Amazon Prime subscribers pay $79 a year for free two-day shipping and discounts on third party products. No word on what Amazon will charge for its streaming service. Netflix, for streaming only, charges $7.99 per month.