Updated: The service has launched now..the page is here.

Amazon.com (NSDQ: AMZN) is launching its new streaming online movie and video service tomorrow...the new service is called, surprise surprise, Amazon Video on Demand. Some details of the service were inadvertently pre-announced by CEO Jeff Bezos at the D conference in May. It will be available at Amazon.com/VOD when it launches...well, not yet fully. Turns out it is only launching in beta now, and will be accessible to a limited number of invited Amazon.com customers on Thursday before it opens more broadly to other users later this summer.

The service will be separate from its Unbox download service, though one would assume they would be merged down the line. The VOD service has about 40,000 movies and TV programs that users can stream right after they order...it looks like it will be a hybrid progressive download service: the first two minutes of all movies and TV shows will begin playing for users on Amazon.com immediately when they visit a title’s product page on store, the NYT story says. Also, it will let users store the video in a virtual locker online, and then they can watch from any PC or TV when that’s connected.

To promote the service beyond its site, Amazon has tied up with Sony (NYSE: SNE) Electronics to place this service on the Sony Bravia line of HD TVs. This means that the VOD service will be available on these TV sets, with the big hurdle being online-to-TV viewing is only available via Sony Bravia Internet Video link, a $300 tower-shaped device that plugs into the TV. Expect Amazon to make similar deals with other hardware companies along these lines.

Amazon’s Unbox video service, launched in 2006, hasn’t been a huge hit, mainly because of its interface and the need to download and install a special software. Also, the service works only with Windows PCs and it did a deal in 2007 to allows users to download to Tivo DVR.

The announcement comes days after Microsoft (NSDQ: MSFT) XBox announced Netflix’s (NSDQ: NFLX) online service integration, and Sony announced is own PS3 video service.

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