Having taken over two companies based in the city as the foundation for its move into on-demand film and TV programme streaming, Amazon is to open new premises in London.

The company said the English capital was "the obvious choice" for the centre, as Britain has led the development of online TV programme and film rentals, and both Amazon's own offerings in this field, from LoveFilm and Pushbutton, were founded there, the Daily Telegraph reports today.

The offices will be in an eight-storey building in an area of north London already known by some as 'TechCity'.

Paula Byrne, the centre's managing director, said the specialist skills available in London made it "the obvious place to come" for Amazon.

From the new centre, Amazon will be taking the fight to Netflix and BSkyB in the arena of on-demand film and TV services.

Amazon has given no details of how many staff will work at the new centre, but many existing LoveFilm and Pushbutton staff will relocate, with other new staff expected to be recruited in the near future.