AT&T and Amazon have recently announced a partnership to bring streaming video service to Amazon Prime. The Amazon service originally began as a perk that could attract more people to the company’s unlimited two-day shipping program. But as Amazon makes steady gains providing content, this new subscription package promises to bring the shipping giant further into the digital entertainment age.

Amazon is attempting to build a streaming video business as a competitor to Neflix. While the Prime package only only available for one year as a part of an intro deal, the new offer bundles Amazon Prime with internet broadband access, and includes HBO and AT&T’s version of basic cable for a one-year intro rate of $39 per month. This arrangement allows Amazon access to both new content and a huge archive of old HBO shows, while allowing HBO the opportunity to offer its programming through a new, online-only option.

The deal also reflects the weird contortions into which all kinds of companies are twisting themselves as they struggle to work out how the future of TV is really going to look. Just recently, AT&T also announced a deal to buy Fullscreen, a YouTube video network that boasts 4 billion monthly views. This is similar to Comcast buying NBC/Universal, though on a much smaller scale. Add to this mix Disney’s recent purchase of Maker Studios, another massive YouTube network. Disney can deliver now deliver content over any internet connection, making it more like a broadcaster, further blurring lines as TV becomes something we watch on the internet and online video becomes something we watch on our TVs.

The new partnership allows Amazon Prime video to become the internet-only variation on HBO. While this new option is a stretch to its traditional business model, the possibility exists that HBO may bundle itself with Amazon with additional providers at a later date. Each alone already forces Netflix to stay on its game. Together, AT&T, Amazon and HBO could become a formidable entertainment force on multiple platforms.