Although it has refused to confirm, Amazon has been rumored to be readying its video download service for launch in mid-August. First reported by trade magazine Advertising Age on Sunday, the service is said to offer both movies and episodes of television shows.

Originally, the service was intended to be a music service, however Amazon executives changed their plans due to the dominance of Apple in the market. The company felt it would be too difficult to break into the market, thus they turned to video, a segment that still has no clear leader.

Like iTunes, users will have to install software on their computers in order to purchase the videos. It is not clear what technology would be used to protect the content, although it is likely Microsoft's Windows Media would be used. As to the services eventual success, luck may be on Amazon's side.

The company has a good deal of experience in selling DVDs, and an already large customer base. While Apple certainly has a head start in video, the company by no means has the market cornered. Analysts say that the company could use this to their advantage and ensure themselves a piece of what is certain to be a growing market.

Rumors of a digital download service first appeared in the New York Times and Wall Street Journal in March. At the time, it was believed that Universal, Paramount and Warner Bros were all in discussions with the retailer to offer their movies through the service.

Apple has also been rumored to be considered offering full-length feature films: enthusiast site Think Secret reported last week that an announcement on such an offering could come as soon as Jobs' keynote at the Worldwide Developer Conference on August 7.