Amazon is set to launch a free, ad-supported video service separate from its $99 Prime Instant Video offering, according to the New York Post . If that feels like deja vu, the WSJ reported exactly the same thing back in March and Amazon firmly denied it. However, the Post confidently said that the service is a definite go now. One source for the rumor was a potential advertiser, which said Amazon was launching the service in order to increase its video share against arch-rival Netflix. Ultimately, it could then tempt users into purchasing a Prime membership.
Amazon offers limited ad-supported streaming now, in a way, by letting non-Prime users watch a limited selection of shows with commercial breaks. If the Post's report proves accurate, the launch of a full-bore streaming service with ads may indicate that the limited version helped entice Amazon customers to buy Prime. Amazon recently scored a deal to stream classic HBO programs like The Sopranos and Six Feet Under in a coup over Netflix. But it's still a shadow of its main competitor's size -- so if the rumor is true, an ad-supported service looks like an attempt to change that ratio.
Filed under: Home Entertainment, Internet, Amazon
Via: TechCrunch
Source: New York Post
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