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Amazon to launch free ad-supported video service

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Old 22-11-2014
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Amazon to launch free ad-supported video service
  

Amazon is about to launch a new video streaming service distinct from that offered with Amazon Prime subscription, which would be offered free but with advertising.

The battle between video streaming service providers raging in the United States and elsewhere and the group Netflix remains the standard to beat for many players. The e-commerce group Amazon will soon launch its own offensive strategy, if you believe the information gathered by the New York Post.

It says that the US giant is preparing to launch a new video streaming service separate from that proposed in its subscription Amazon Prime. The service, expected to be available early next year, will be free but will contain advertising.

And the integrated streaming video offering premium has never been considered a threat to Netflix and others by analysts as to go through a subscription of $99/year, the future proposal could instead undermine the business model of specialized players, which offer access to their catalog from 7.99 dollars/month.

Streaming Video

The New York Post suggests that even decoupled subscription of Amazon Prime, this initiative remains the possibility of a gateway to its services while seeking to increase the number of users consuming video through it while the group was third in the US behind Netflix and Hulu.

The rumor of a free video streaming service from Amazon had been raised earlier this year by the Wall Street Journal but had been denied later. According to indirect data compiled by analysts, half of the 50 million would use Amazon Prime streaming video service subscribers included, compared with 33 million customers claimed by Netflix.

The presence of targeted ads could also allow Amazon to obtain information on their shopping conversion rate on its e-commerce portal.

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