Amazon is set to announce a web video deal with Viacom, according to a report this afternoon by Reuters — which describes the deal as one of the final steps prior to Amazon launching a standalone video subscription service.

The move would boost Amazon’s competition with Netflix, which has said in the past that Amazon isn’t making a noticeable dent in its business.

Amazon currently offers videos for download and rental through its Amazon Instant Video service, and Amazon Prime subscribers have access to a portion of that catalog at no-extra charge as part of their $79/year subscription fee.

The Seattle company is counting on subscriptions and content sales to help make up for the low price of its $199 Kindle Fire tablet, which it’s selling at or near cost in an effort to gain market share.

Earlier this week, Verizon and Coinstar’s Redbox unit announced a streaming video partnership, in another potential challenge to Netflix.

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  • Guest

    It’s the apps, stupid.

    I don’t care if you add every film ever created to Amazon video subscription service. Until I can stream Amazon to iPad, iPhone, Android phone, Xbox 360, PlayStation 3, and 3DS, I’m sticking with Netflix. Netflix has apps. Amazon only has content.

    It’s the apps, stupid.

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