While many companies have recently gotten into the on-demand video business, only a small handful have attempted to follow the Netflix model of offering unlimited video streaming for a flat monthly rate. But the market leader could face a challenge in the near-future from Amazon.com, which is reportedly looking to start a subscription service that would compete directly with Netflix.

According to Reuters, the online retail giant has been chatting with people at various media companies — Time Warner, Viacom among them — to test the waters regarding a possible subscription service that would offer unlimited access to streaming movies and TV shows for a monthly fee.

Reuters’ sources say things are at an early stage and “It is still not clear if the media companies would agree to Amazon’s proposals.”

Another report from the Wall Street Journal says Amazon is considering the possibility of adding the subscription service to its existing Amazon Prime service, which gives members free 2-day shipping on many purchases for an annual fee of $79.

We’ll be sure to add a question about this news to the list we send to Netflix.

Amazon eyes subscription Web TV service [Reuters]

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