Currently, Netflix has a huge hold over the video streaming market, with a reported 35 percent of total Internet capacity in the US being devoted to it. However, Amazon is looking to muscle its way into this market even further with the introduction of another video service, one that would coincide with its existing Prime streaming service.
A report from the New York Post indicates that the new video channel will, in fact, be an ad-supported free video service, compared to the $99 Prime Instant subscription based channel that also provides other perks. It’s being considered an alternative for Prime, for those who don’t really have a need for expedient two-day shipping or the other options.
This service was actually hinted at back in March of this year, when the Wall Street Journal reported its existence. Amazon was quick to respond that the rumors weren’t true, although it’s changed its tune as of late. According to an email placed by TechCrunch to Amazon spokesperson Sally Fouts, the response has loosened up a bit. “We currently offer the first episode of some television shows free with ads through our First Episode Free feature on Amazon Instant Video, and there are display ads on some short videos such as movies and game trailers,” she said. “We’re often experimenting with new offers and experiences for customers, but we have not announced any plans to offer an ad-supported video streaming service.”
The service would actually make sense for Amazon, opening up a new avenue for consumers looking for an alternative service to Netflix, but without being stuck with a monthly subscription fee. It would also bring in a bevy of advertisers looking to reach out to said audience, as Amazon is sure to offer a number of programs that greatly benefit them for doing so.
Amazon is no stranger to selling advertising. Its devoted media group already works with a number of Amazon-based properties (including the IMDB page), offering both mobile ads and special advertising for its Kindle devices. This program is already quite successful, bringing in $1 billion annually, so a streaming service would probably boost it as well.
We’ll let you know once the company makes it official. In the meantime, interested customers can get a glimpse of this service through the aforementioned First Episode Free program on Amazon’s site.
