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Amazon deploys download TV service with TiVo last week launched a video download service that allows customers to watch Internet-acquired programming on a television set.

First announced last month, Amazon's Unbox on TiVo makes Amazon's online video service available to more than 1.5 million TiVo subscribers with broadband connections.

At launch, TiVo is offering $15 in free downloads to new customers. TV show episodes cost $1.99, while most feature films are priced between $9.99 and $14.99. Customers must use a personal computer to rent or buy the programming.

The Amazon and TiVo partnership is designed to couple TiVo's user-friendly digital video recording technology with a growing video software distribution business. The new service competes with download services operated by Apple and Wal-Mart stores.

PricewaterhouseCoopers told Reuters that the Internet video download business is expected to be worth $3.7 billion in annual revenue in 2010.