It is widely believed the new device will be a TV set-top box, similar to Apple TV, that as well as showing live TV will enable Amazon Prime customers to stream further on-demand content direct to their televisions.
Amazon are keen to compete in the set-top box market, and believe that the box, which is expected to be called Fire, will be popular with their established base of 200 million customers.
According to reports, Amazon have been in discussion with at least three major media companies, securing the rights to hit TV shows such as Downton Abbey. They have also invested $1 billion in content last year, financing 14 TV pilot series in 2013. The shows have been available for free on Prime and Lovefilm, and Amazon plans to use viewer feedback to decide which pilot will be developed into a full series.
Since recently acquiring video studio Double Helix Games, rumours have also been circulating that Amazon will use the press event to announce its intention to move into the game console market. Double Helix studio develops games such as Silent Hill: Homecoming and GI Joe and The Rise of Cobra for Apple and Android devices. If Amazon decide to launch their own console they will be competing in a market already dominated by big names such as Sony, Nintendo and Microsoft.
Whatever it offers, the set-top box is expected to hit the shelves later this year.