Amazon is entering the video on demand arena with Sony as its first partner to deliver the experience directly to the TV.

Amazon already offers the ability to download movies and TV shows with their Amazon Unbox Service.

The Amazon video streaming service will be available on the Sony Bravia Internet Video Link system. Sony BIVL (BRAVIA Internet Video Link was announced early last year and connects to the back of BRAVIA TVs.
Amazon will offer 40,000 movies and TV shows over the service with instant streaming capability after purchase.
Amazon will aim to strike deals with other TV and set-top box makers.
There is no date yet when the service will be available.
More details on the NY Times.

Amazon will compete with Netflix again on this service. Netflix streaming is available on PCs, Netflix Roku Player and soon on the Xbox 360.