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 Amazon's second time around in VOD is a success, with a very well-stocked service that will give iTunes and the rest a run for their money. The service was relaunched in September 2008 to improve on the Unbox service (that term is no longer used--it now only refers to the actual Amazon set top box which is no longer sold), and it works for both PCs and Macs.
Under the new VOD service, programs play in Flash Video in all web browsers--a plus as many services work only with PCs and with Internet Explorer. The downloads are purported to be "DVD quality"--the average bit rate of an Amazon VOD-purchased download is some 2,500 Kbps (iTunes quality is only half that, some 1,250 Kbps for comparison), meaning a two hour movie would be roughly 2 GB. In comparison, a typical DVD averages 5600 Kbps, or 4.7 GB total. However, Amazon uses the VC1 codec, a more modern format than the DVD, which allows a higher quality in a smaller file.
Amazon advises customers need a connection of at least 800 Kbps/s, though a slow connection like this would result in a 7 hour film download time. Three Mbps would be far preferable if using this, or most other VOD services. Amazon asserts that a customer with a 3 Mbps connection will be able to buffer and begin watching a film within 5 minutes of ordering--not bad, but longer than some other services. Note that if you stream a "rental," the quality is not as good as a purchase download, only 480p resolution (ranging from 300 Kbps and 1.2 Mbps), which is good on a smaller screen, but probably not so good on a 42+ inch set.
 The content is excellent, with over 30,000 programs of various types--more than any other major VOD service. In fall 2007, Amazon scored a coup by winning exclusive rights to disseminate NBC programs away from iTunes. The original Amazon Unbox service was launched almost precisely two years before this latest revamp, in September 2006, and came under criticism for its reliance on Windows Media DRM, excluding the Mac. The previous version also allowed only one download to one device, and did not allow for re-delivering content you had purchased from Your Video Library on Amazon's site. This deficiency has been remedied, and if you want to re-watch something you've purchased, you can just log in to Your Video Library and you can re-strream it for free whatever your location in the US.
 Browsing is a bit different from nearly all other VOD sites, in that you have a big bit of cover art, and items begin streaming as soon as you click on them--no details on the film and preview button, you just stream. We'd prefer a more traditional approach before starting to load, especially if you're on a slower connection. At least you haven't committed to buying with that single click though; unlike all other VOD services the first few minutes of all titles are free, so you can "try before you buy."
As with so many VOD services, "rental" films are available to watch for up to 30 days after downloading, but once you being watching them, the disappear within 24 hours.
The major downside of the new Amazon service is a continued lack of HD content in a time when more and more US households are adopting that standard, and other VOD sites are gradually pushing ahead with it. We hope Amazon will consider this HD option for future content.
Dissemination: Of course you can always watch films on your computer, but the majority of Amazon VOD users will want the films piped to their living room.
Other than the Amazon Unbox (which they no longer sell, but will still work with the once eponymous service), users can also stream their shows straight onto the TiVo Series 2 and 3 Digital Video Recorder (HD model $241)
 You can also download direct to a broadband-enabled Sony Bravia TV (some are enabled with this out of the box, for most an adapter needs to be purchased). The beauty is that these devices are optimized for the Amazon service--you can use it to browse and reserve films without ever going near your computers. It is not simply a media extender as so many other VOD services use, it interacts directly with the Amazon site. For the TiVo, once you select a film, it gets added to your Now Playing list just like anything else you've taped. And again, if you delete something you purchased from you TiVo (by accident or design), you can always go back to Amazon's Your Video Library and re-download it, an excellent feature. We believe this approach strikes a good balance between "owning" the content (to the extent you can with DRM), and not having to manage it, though purists will still insist on no restrictions.
Other options for getting films to your living room involve using the Xbox 360 video games console ($299), Windows Media Center PCs, or direct connections from both PCs and Mac to your TV. Unfortunately Amazon VOD still uses Microsoft's PlaysForSure format, which excludes portable devices like the iPod and Zune.
Prices: Amazon Video on Demand prices for a film rental range from $3 to $4, and purchasing a film with no ads costs $10-$15, slightly cheaper than most services. All TV episodes cost $1.99, the new industry standard. However, you can sign up for TV series TV Pass and get all episodes for at least a 5% discount--and you don't have to pay for it all up front, it's really just a commitment to pay for each episode at a discount as they come out or when you want to watch them.
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VOD Basics