The consumer research team from a US company called Detwiler Fenton, revealed earlier today that Amazon was preparing a new colour Kindle codenamed Hollywood which is capable of streaming video content, or so they've heard from anonymous sources.
The colour Kindle, which Detwiler Fenton did not specifically qualify as a tablet, said that the device could be sold with a promotional video service offering, the same that is currently offered to Prime customers, for an unspecified amount of time.
The research firm (opens in new tab) also expects it to come with a faster (and better) application processor (presumably based on ARM's architecture) and to feature a 10-inch colour screen, just like the Apple iPad 2 and the Samsung Galaxy Tab 10.1.
The note also suggests that there will be a smaller Kindle colour tablet and that the bigger one may cost a smidgen less than $400, below the price of the Apple iPad.
We will be sorely disappointed if Amazon offers only a video service with its Kindle colour tablet(s). The online retailer has gradually built up a cloud infrastructure over the years that is good enough to match that of Apple and other competitors.
In addition, it has built a portfolio of entertainment services thanks to some judicious acquisitions (Lovefilm, Audible) that it has complemented with some equally smart offerings (Amazon App Store, Amazon Music etc).