The device, dubbed "Frank" inside Amazon, is a new type of digital video recorder for the streaming era.
Amazon didn't immediately respond to a request for comment.More news: The Vatican Has Responded to the Pennsylvania Priest Abuse Scandal
Boxes made by TiVo and Dish Network offer similar functionality, but Amazon's huge presence combined with Alexa smart speakers could make Frank DVR a huge success if it launches. This device would not necessarily play live TV, but it would work with live TV to record programming.
TiVo's stock was down as much as 10% in midday trading on Friday, but it closed down only slightly. But the device will also store data locally, something the Fire TV boxes haven't done, which could be a selling point in itself.More news: China's Xiamen Airlines plane skids off runway at Manila's airport
The retail giant's secretive Lab 126 research and development center in Silicon Valley is working on the project, it is believed. There is no release date for the device yet, with Bloomberg noting that the company may still decide not to release the product at all. It also created Prime Video, a library of streaming TV shows and movies available to its Prime members.
Details on when Amazon plans to debut the new box haven't been revealed. Amazon is also planning a software update to the Fire TV stick and looking to get Fire TV software built into more TVs, says Bloomberg.More news: The OnePlus 6T will be officially supported by T-Mobile this fall
Amazon's moves show that the company is targeting a wide range of TV-associated devices including Roku as well as TiVo and Slingbox.