Amazon to Launch Film Streaming Service

U.S. online retailer Amazon.com is developing a film streaming service, which would compete directly with Netflix Inc, the Financial Times said.

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Amazon (NASDAQ:AMZN) is planning to bundle access to the streaming service with Amazon Prime, a scheme that guarantees Amazon customers unlimited free shipping of books and other items sold by the online retailer after paying an initial fee, the FT said, citing a person familiar with Amazon's plans.

Amazon's has just agreed to buy the 58% of British DVD and games rental firm Lovefilm that it does not already own for an undisclosed price.

Amazon did not immediately respond to Reuters calls seeking comment.