Trending: Amazon narrows HQ2 search to 20 cities, moving to next phase in contest for $5B economic prize

The black-and-white display of the Kindle DX’s plans for a new color-screen tablet computer has got to be one of the worst kept secrets in the tech industry. And now here’s a little more fuel to toss on the fire. Boston research firm Detwiler Fenton says in a note today that Amazon’s new device is expected to come with a free video streaming service for early buyers of the gadget.

No wonder the next-generation tablet is code-named “Hollywood.”

Amazon will need to make a splash with the new device as it looks to aggressively compete with Apple, and its best selling iPad. As we’ve seen recently, Amazon is not afraid to promote new services with deeply discounted offerings.

The company spent an estimated $3.2 million on a recent promotion of Lady Gaga’s new album, an effort to drum up support for its new Cloud Drive music service. Earlier this year, it gave away free video streaming to members of its Amazon Prime service.

Detwiler Fenton said that the new gadget, featuring a 10″ screen, is expected to debut prior to the holiday season at a price point around $399.

[Via BGR]

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