Amazon to take on Netflix with ad-supported video streaming service – Inquirer

AMAZON REPORTEDLY plans to take on Netflix with an ad-supported video service in early 2015 that will be seperate to its current Prime offering.

That’s according to The New York Post, which has heard from an unnamed source that Amazon will launch an ad-supported streaming offering early next year that will be separate from its £79-a-year Prime service, which includes access to Amazon Instant Video.

It’s unclear if Amazon’s upcoming service will be free, but the report claims that the firm will undercut Netflix’s £6.99 monthly price. The Wall Street Journal had previously reported that Amazon was gearing up to launch a free video streaming service, but the firm denied the rumours.

Commenting on the latest speculation in a statement seen by TechCrunch, an Amazon spokeswoman didn’t give much away.

She said: “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 movie and game trailers.

“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.”

While Amazon said little, such a move for the company would make sense. 

The New York Post notes that it would be a way for the firm to lure new customer to its paid-for Prime service, and it would also give Amazon another platform toadve rtise its own products, such as the Kindle Fire TV. 

“The main point is to bring in more users that you can eventually up-sell to Prime, or to get to a broader audience that doesn’t want to pay for Prime, in order to increase their video share,” the newspaper’s source said.

However, the firm has a long way to go before it catches up to Netflix, with US network optimisation company Sandvine this week revealing that the streaming service accounts for almost 35 percent of peak internet traffic in the States. 

Amazon Instant Video, on the other hand, accounts for 2.6 percent of traffic. µ

Amazon to take on Netflix with ad-supported video streaming service – Inquirer

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