Is Amazon Adding Ad-Supported 'Prime TV' Service

14 November, 2017, 14:06 | Author: Leticia Walters
  • Report: Amazon is Working on A FREE Ad-Supported Version of Prime Video

Good news for all you holdouts-Amazon is developing a free version of its video streaming service, clearing the way to make all of Amazon's original programming free for all, according to a report by AdAge. That would make its offering the Spotify of the video streaming industry, with both a premium and free offering.

Sources familiar with Amazon's plans tell Ad Age that the e-commerce giant is holding talks with movie studios, TV networks and other media companies with regard to supplying programming for the service. Amazon may also give content creators their own channels. There is likely to be one stark difference between the two, however. The service would be available to non-Prime members, and it would feature adverts.

But now may be the time for Amazon to delve back into this space, given the rise of live TV streaming services like Sling TV, DirecTV Now, PlayStation Vue, YouTube TV, and Hulu Live TV, for example. The company was hotly tipped to be preparing such a service back in 2014, although that never came to fruition, so the new rumours should be taken with a pinch of salt. "A version paid for by advertisers instead of subscribers could provide a new foothold in streaming video for marketers, whose opportunities to run commercials are eroding as audiences drift away from traditional TV and toward ad-free services like Netflix and Prime". It includes syndicated movies and TV shows, as well as original content produced by Amazon.

It's not just about getting ads in front of customers, however. As part of its strategy to swoon content creators, Amazon may share audience information with them alongside ad revenue. This way, the company will not dilute the subscription-based Prime Video offering. There's no word on when the company might try to launch the service at this time. One source even said ad revenue could be shared in exchange for a set number of hours of content each week.

While Amazon is increasingly becoming interested in advertising, the company has tended not to share its own data with third parties.

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