Google TV has been around for a while, but the platform hasn’t evolved enough to really reach mass adoption. Many believe competitors like Roku and Apple TV to be superior, but that is about the only major competition Google Tv has. This may be changing soon as more smart TV platforms start to get created, and the latest rumor says Amazon is the next player.

Anonymous sources familiar with the project claim Amazon is working on a streaming set-top box of its own. Amazon has already joined the tablet market and rumors of a smartphone in the making populate the internet. Could it be Amazon is ready to release a possible “Kindle TV”, as well?

It seems the project is being developed by Amazon’s Lab126 division, located in Cupertino, CA. This division has been developing TV-connected devices for multiple years, so it doesn’t seem like the idea is too far-fetched.

The sources claim the device will allow users to stream Amazon Video on Demand and Amazon Instant Video. Other details are scarce, but we are curious to see if this will be a direct competitor to Google TV. Amazon has been using Android for its devices, so it may very well run Google TV (or Android)!

Also, we are not sure if the device would only give access to Amazon content or if there will be other apps available. Surely, Amazon’s content would be at the forefront, but we can’t see many people purchasing it if the company limits the content to a single source. Even if the box would probably be affordable.

We will have to see how things unfold. Not only with Amazon’s smart TV box, but with the many services that are starting to be offered. We have the WiiU bringing TV functionality, and more recently it was rumored that the Xbox would become a huge competitor to Google TV (possibly Google’s biggest threat to date). Google really needs to step things up if they don’t want Google TV falling behind the competition.

[via Bloomberg]