Extending its reach further into video, Amazon next month plans to launch an Internet TV and movie download service along the lines of iTunes, Advertising Age reported.

The project, called Amazon Digital Video, has been in development for a year and will include both subscription options and a download fee for movies and TV shows. The service requires users to install Amazon software on their machines, much like Apple Computer Inc.’s iTunes audio and video Web store.

Advertising Age likens the Amazon subscription option to the Netflix movie rental model. Amazon spokesman Sean Sundwall declined to comment on the Advertising Age story.

Amazon has already taken its first steps into the online TV business. The Internet retailer introduces new episodes of “Amazon Fishbowl with Bill Maher,” a weekly interview show, every Thursday night. The episodes are then available throughout the week.