Apple has been a rival already to the current video service of Amazon, as the web browser in Apple’s tablet can load Amazon Kindle app or purchase books from iBooks, while its iTunes provide a rich library of content.
Amazon’s tablet would complement its line-up of e-Kindle e-readers by entering the tablet market.
The movie service is already offered by Amazon to its prime customers for free.
Amazon has set a price of $399 for the 10-inch color Kindle tablet, to undercut the starting price of Apple iPad.
Amazon is also rumored to include the Amazon Android Appstore, which could be the exclusive way to get app on a (unhacked) color Kindle, a version of the Amazon Cloud Player for music, and, of course, the Kindle Store, for all your e-book reading needs in the tablet.