Amazon Download Debut

Amazon is entering a crowded market. Apple has been offering episodes of television series since last year. Plus, services such as Movielink and CinemaNow have only attracted a limited following. These services can only offer a scant selection because of the studios' existing distribution agreements. Plus, consumers continue to prefer watching movies at home on their televisions.

"Consumers aren't running out to download movies,'' says Mike Kaltschnee, the editor of Hacking Netflix, which is independent of Netflix(NFLX Quote). Nonetheless, he expects Amazon to do well at the business because the market is going to develop.

"When you are searching for a movie on IMDB and you find something you like, you don't want to wait two or three days for it to show up,'' he says.